MASTER 
NEGATIVE 

NO.  94-821 64 


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Author 


Comer,  George  Nixon 


Title 


Book 


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MASTER    NEGATIVE   # 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

BIBLIOGRAPHIC  MICROFORM  TARGET 


ORIGINAL  MATERIAL  AS  FILMED  -    EXISTING  BIBLIOGRAPHIC  RECORD 


420 
C7311 


Comer,  George  Nixon^  d«  1877 • 

Book-keeping  x^tionalizedi  adapted  to  all 
kinds  of  business,  *  personal  and  partnership 
commission  and  corporate*  Together  with  en- 
tirely new  and  rapid  methods  of  computing'in- 
terest,  exchange,  averaging  accounts,  etc.  A 
copious  appendix,  and  a  fac-simile  of  the 
written  pages  of  the  day,  cash,  and  ledger, 
with  forms  of  set  of  exchange,  promissory 
notes,  drafts,  etc.  By  George  N,  Comer  ••• 
41st  thousand  of  the  combined  works.  Boston, 

fVed'k,  A.  Brown  &  co«,  1866. 

168  p.  fold.  ^m^.  front,  (forms)  2  fold« 

facsim.     19^.      '     J 


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V 


BOOK-KEEPUfG  RATIONALIZED: 


ADAPTED  TO  ALL  KINDS  OF  BUSINESS, -PERSONAL    AND   PART- 
NERSHIP, COMMISSION  AND  CORPORATE. 

TOGETHER  WITH 

ENTIRELY  NEW  AND  RAPID  METHODS  OF  COMPUTING  INTEREST, 
EXCHANGE,  AVERAGING  ACCOUNTS,  ETC. 

A  C0PI0D3 


A.PPENDIX, 


AND   A    FAC-SIMILE   OF   THE   WRITTEN    PAGES   OF   THE    DAY,  CASH, 

AND  LEDGER,  WITH  FORMS  OF  SET  OF  EXCHANGE, 

PROMISSORY  NOTES,  DRAFTS,  ETC. 


BY 


GEORGE    N.   COMER,   A.M., 

accountant;  author  of  '•' dcRjblejEntr-^ .BcjoK-jtsEWNG .without  the  journal,"  etc.; 

FOUNDER,  AND,   FQR  TWENTY  •TEAR*  FAST,   PRi'nCIPAL  OF  COMER'S 
COifUERCIAL  (lOLLESE,  SOSTON. 


*         •     t 


1  t 


FORTY-FIRST  THOUSAND  OF  THE  COMBINEb  WORKS. 


BOSTON: 
FRED'K    A.   BROWN    &    CO. 

CINCINNATI,  OHIO: 

GEORGE    S.    BLANCHARD 

1865. 


MoTi^gomery  Library 
"^  ©f  Accountancy 

C7JI/ 

Entered,  according  to  Act  of  Congress,  in  the  year  1861,  by 

GEORGE    N.   COMER, 

In  the  Clerk's  Office  of  the  District  Court  of  the  District  of  Massachusetts. 


NOW  READY: 


RULED    BLANK   BOOKS, 

ADAPTED  FOR  TSINO  WITH 

OOMEE'S   BOOK-KEEPING   EATION ALIZED, 

DAT,  CASH,  AXD  LEDGER, 

I 

WITH   PRINTED  INDEX  AND  TRIAL  BALANCES. 

Eetail  pjrice,  50  ots.  per  set.     '  , 

jQTJijials,'  •  :  is  efts.  eaoh. .  ,  . . .' 
•  •     •    * 

.     '^''  •        .       •         '       ' 

of'  Accountancy 

ElECTROTTPED  AT  TH£ 
BOSTON    8TEEE0XTPI    FOOKDRT. 


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Sixteen  years  ago  I  issued  my  first  work  on  Book-keeping.  At 
that  time  it  was  the  universal  custom,  with  those  who  pretended  to 
keep  their  books  by  double  entry,  to  "Journalize"  the  transactions 
from  the  other  books  previously  to  posting  to  the  Ledger;  it  is  a 
source  of  great  gratification  to  me  to  know  that  at  the  present  time 
three  fourths,  at  least,  of  all  the  best  mercantile  houses  have  dis- 
pensed with  that  unnecessary  encumbrance. 

The  very  great  success  which  has  attended  my  efforts,  and  the 
increasing  applications  from  influential  parties,  have  induced  me  to 
prepare  a  work  which  shall  not  only  meet  the  wants  of  School 
Teachers  and  Students,  but  also  be  a  reliable  book  of  reference  for 
Book-keepers  and  Clerks ;  and  it  may  be  presumed  that,  after 
twenty  years'  experience  as  an  Accountant  and  Principal  of  the 
Commercial  College*  in  this  city,  I  have  had  some  facilities  for 
ascertaining  the  wants  of  the  class  for  whom  I  here  purvey. 

It  is  proper  to  state,  that  the  article  on  "Commercial  Compu- 
tations," (with  the  exception  of  the  opening  chapter  on  Fractions, 
Decimals,  and  Logarithms,)  has  been  mostly  prepared  by  Mr.  Linton. 


GEORGE  N.  COMER. 


Boston,  May,  1861. 


*  See  Card  at  the  end  of  this  book. 


(3) 


CONTENTS. 


1 


Book-Keepino  —  Introductory, 5 

Hints  to  Students, '' 

Directions  to  Teachers, ^- 

Day  Book, ^^ 

Cash  Book, ^^ 

Explanations  of  Day  and  Cash  Entries,  and  Posting  to  the  Ledger, ,  .  34 

Ledger, ^^ 

Trial  Balance, 41  and  (-.3 

Statement, ^ 

Bills  Receivable  Book, ^^ 

Bills  Payable  Book, ^^ 

Posting  the  Bill  Books, *'^ 

Day  Book  — Second  Form, l^ 

Bills  Keceivable  Book— Second  Form, ^2 

Bills  Payable  Book  — Second  Form, '3 

Sales  Book, 1^ 

Invoice  Book, '5 

Check  Book, ^^ 

Journal, '^ 

Accurate  Accountant— Test  Set, 83 

Partnership  Set, ^ 

Commercial  Computations, ^^ 

Fractions, ^^ 

Decimal  Fractions, ^^'^ 

Logarithms, ^^^ 

Interest, ^^J 

Sterling  Currency, ^^^ 

Discount, ^^^ 

Profit  and  Loss, ^'^ 

Percentage, '^" 

Averaging  Accounts, ^21 

Exchange, ^^^ 

Cubic  Contents  of  Boxes,  Bales,  Ac, 1+t 

Table  for  Farmers, ^**''* 

Table  of  Cubic  Measures, •  •  ^'^ 

Equation  of  Storage, '^'' 

Appendix— Mercantile  Terms,  Forms,  &c., HS 

Circular  on  making  Bank  Deposits, •  .  .  .  ir4 

Table  of  Foreign  Moneys, l^^** 

Questions  for  Practice  — Liquor  Agency  Account,  &c., ifi? 

Card  — Comer's  Commercial  College, 168 

(4) 


I 


BOOK-KEEPING. 


Book-keeping  is  the  art  of  recording  and  classifying  a  merchant's  daily 
transactions,  and  of  keeping  an  account  of  his  property  and  debts. 

Book-keeping  is  nothing  but  a  series  of  additions  and  subtractions  system- 
atically arranged.  Whatever  amount  is  placed  to  the  debit  or  credit  of  an 
account  is  added  to  that  side  of  the  account,  and  is  an  offset  to,  or  is  offset  by, 
whatever  amount  may  be  on  the  opposite  side  of  the  account. 


Illustration. 


1.  A.  B.  buys  of  me  Mdse. 

2.  A.  B.    "      "    "        " 

A.  B.  owes  me 

3.  A.  B.  pays  me  Cash 

A.  B.  owes  me 

4.  I  buy  of  A.  B.  Mdse. 

I  owe  A.  B. 

5.  I  buy  of  A.  B.  Mdse. 

I  owe  A.  B. 

6.  I  pay  A.  B.  Cash 


$500 
300 

800 
500 


Add. 


Subtract. 


5QQ  ^Subtract. 


200 
300 

500 
50O 


Add. 


Subtract, 


A  book-keeper  would  arrange  such  an  account,  to  show  the  whole  transactions 
at  a  glance,  thus :  — 
Dr.  a.  B.  Cr. 


Merchandise 
Cash 


500; 00  3 
30OlO0!|  4 
50000  1  5 


1300,00 


Cash 
Merchandise 


(( 


a, 


$ 


500' 00 
500  00 
.300  00 


1300  00 


The  system  pursued  in  double  entry  serves  the  following  purposes  :  — 

1.  To  test  the  accuracy  of  the  posting  —  the  second  posting  being  a  check  on 
the  first. 

2.  To  show  the  amount  of  goods  bought  and  sold  during  the  year,  or  for  any 


othur  given  time. 
1* 


(5) 


BOOK-KEEPING. 


HINTS  TO  STUDENTS. 


3.  To  show  the  profit  or  loss  on  the  various  departments  of  the  business. 

4.  To  keep  distinct  accounts,  under  their  several  heads,  of  the  different 
branches  of  stock  in  trade,  and  other  property. 

The  followinf'  are  the  most  important  of  the  books  used  in  Book-keep- 


ing:— 


Invoice  Book,  for  Goods  bought. 

Sales  Book,  for  Goods  sold. 

Cash  Book,  for  Cash  received  and  paid ;  discount  or  abatement  received 
and  allowed. 

Check  Book,  lor  orders  on  a  bank  for  money  deposited. 

Bill  Books,  for  Bills  Receivable  and  Payable. 

Day  Book,  for  entries  which  do  not  properly  belong  to  cither  of  the  other 
books. 

Ledger,  to  contain  an  abstract  of  the  other  books. 

Stock  Book,  to  contain  an  inventory  of  the  Stock  on  hand  at  the  time  of 
taking  stock. 

Letter  Book,  to  contain  copies  of  letters. 

Various  other  books  may  be  used,  aceording  to  the  nature  of  the  business. 
Full  explanations  of  these  books  will  be  found  under  the  proper  heads  in  the 
Appendix. 

For  convenience  of  space,  the  success  in  instructing,  and  to  show  the  facility 
with  which  a  small,  or  even  a  very  considerable,  business  may  be  done  with 
only  three  books,  a  Day  Book,  Cash  Book,  and  Ledger  are  all  the  principal 
books  used  in  the  examples  which  follow. 

"DR.  TO"  AND  "OR.  BY." 

It  has  been  a  very  general  practice  to  use  the  words  To  and  By  as  prefixes, 
as  Dr.  To,  Cr.  By,  both  on  the  books  of  original  entry  and  on  the  Ledger. 
I  have  dispensed  with  these  words,  feeling  that  they  have  done  more  to  con- 
fuse the  minds  of  beginners  in  book-keeping  than  all  the  words  in  the  lan- 
guage. Besides,  there  is  not  only  no  use  for  them,  but  they  absolutely  convey 
a  wrong  idea.  When  we  say  A.  B.  Dr.  To  Merchandise,  it  is  not  the  fact. 
A.  B.  is  Dr.  to  us  for  the  merchandise  we  have  delivered  to  him,  and  never  ^as, 
and  never  could  be.  Dr.  to  the  Merchandise. 

Some  teachers  may  imagine  that  the  entries  on  the  Day  Book  are  too  difficult 
for  learners.  To  this  I  can  only'say,  that  a  youth,  upon  his  entrance  into  a 
counting  room,  is  expected  to  be  able,  at  least,  to  copy  invoices  neatly  and  cor- 
rectly. Every  entry  here  introduced  is  the  duplicate  of  an  actual  business 
transaction,  and  for  this  I  claim  the  advantage  of  teaching  the  student  to  do 
here  what  he  may  be  called  upon  to  do  hereafter. 

(6) 


HINTS  TO  STUDENTS. 


As  Book-keeping  is  an  art,  and  not  a  science,  —  that  is,  a  somethmg  to  be 
ione^  rather  than  a  something  to  be  known,  — Xha  mere  readmg  of  this  book, 
or  the  copying  out  of  its  examples,  will  not  be  sufficient.  There  should  be 
such  a  knowledge  of  its  principles  acquired,  that  — supposmg  any  form  of 
business  to  be  given  — the  student  shall  be  able  practically  to  work  out  such 
assumed  transactions  to  any  desired  extent ;  so  that,  when  he  shall  be  called 
upon  to  undertake  the  management  of  a  real  set  of  books,  he  may  be  perfectly 
competent  so  to  do.  To  insure  this  practical  familiarity,  the  student  is  re- 
quired to  write  out  the  entries,  making  all  the  computations,  then  post  them 
to  their  appropriate  places  on  the  Ll^cr,  and  finally  to  take  a  memorandum 
record  of  transactions,  make  the  original  entries  in  their  proper  form,  and 
carry  them  through  the  books  precisely  the  same  as  he  would  have  to  do  in 
actual  business.  In  a  word,  to  acquire  the  art  of  keeping  books,  we  must 
keep  them,  just  as  we  learn  to  swim  by  swimming. 

The  necessity  for  writing  quickly,  and  the  want  of  carefulness  at  first,  are 
the  causes  why  so  few  clerks,  comparatively,  write  a  good  hand.  But  they 
should  remember  that  this  is  a  most  important  qualification,  and  a  deficiency 
hi  this  respect  may  be  an  insuperable  bar  to  promotion.  You  ought  to  be 
careful  to  write  &  plain  hand.  You  impose  upon  your  correspondents  a  very 
unnecessary  and  very  unpleasant  tax  if  you  require  them  to  go  over  your 
letters  two  or  three  times  in  order  to  decipher  your  writing.  A  business  hand 
is  equally  opposed  to  a  very  fine  hand.  A  letter  in  fine,  finical  writing, 
adorned  with  a  variety  of  flourishes,  will  give  your  correspondent  no  very 
high  opinion  of  you  as  a  man  of  business. 

The  young  clerk  should  be  taught  to  fold  all  Letters,  Invoices,  &c.,  on  a 
tin,  so  that  they  shall  be  of  uniform  size,  making  a  neat  package,  properly 
labelled  on  the  back,  or  surface  next  the  eye,  with  the  name  of  the  correspond- 
ent or  seller,  date,  date  of  receipt,  &c. 

He  should  be  taught  to  sign  his  name  in  full  when  receipting  for  money  or 
goods  had  for  his  employer,  thus,  "  For  William  Ewart,  James  Jones ; " 
and  not,  as  is  too  commonly  seen,  "  William  Ewart,  J." 

He  should  also  be  taught  to  make  his  figures  clear  and  plain,  so  that  a  2 
cannot  be  mistaken  for  a  3,  nor  a  3  for  a  5.  He  should  also  take  care  that  the 
tail  of  his  7  or  his  9  does  not  run  into  the  line  below,  and  thus  turn  a  0  into  a 
6,  and  also  that  the  top  of  his  4  does  not  reach  so  high  as  to  turn  a  0  in  the 

(7) 


M' 


BOOK-KEEPING. 

tine  above  it  into  a  9.  He  should  be  careflil,  too,  In  putting  his  figures  under 
one  another,  so  that  the  units  shall  be  under  the  units,  the  tens  under  the 
tens,  the  hundreds  under  the  hundreds,  and  the  thousands  under  the  thou- 
sands ;  otherwise,  when  he  adds  up  the  columns,  he  will  be  in  danger  of 
making  a  "  wrong  cast."  To  insure  accuracy,  a  clerk  will  cast  every  col- 
umn twice.  The  old  mode  of  doing  this  was  to  begin  at  the  bottom  of 
each  column,  adding  upwards,  and  carrying  the  overplus  to  the  next  column, 
and  having  found  the  amount,  to  reverse  the  order,  commencing  at  the  top 
and  adding  downwards.  An  accountant,  however,  is  always  liable  to  inter- 
ruption, and  frequently  when  half  through  an  addition  of  several  columns  of 
figures  :  to  enable  him,  therefore,  to  leave  ofi"at  any  column,  and  resume  at  any 
time  where  he  left  off,  without  the  necessity  of  remembering  the  figure  to 
carry,  the  following  method  is  offered :  — 


273.51 

341.22 

12 

469..37 

17 

35 

327.14 

29 

31 

29.63 

84 

29 

60.50 

35 

17 

85.70 

12 

1587.07 


1587.07 


Here  he  may  begin  at  either  side  first ;  and  if  the  amounts  do  not  correspond, 
he  can  at  once  see  in  which  column  the  error  has  occurred,  without  the  neces- 
Bity  of  going  over  the  whole. 

Quickness  can  be  acquired  only  by  practice.  But  he  would  accelerate  his 
Bpced  by  making  his  figures  plain,  and  placing  them  strictly  in  a  line  under 
one  another.  He  should  also  learn  to  cast  without  speaking,  for  the  eye  and 
the  mind  will  go  faster  than  the  lips. 

He  will  also  be  taught  to  balance ;  that  is,  to  find  the  difference  between  two 
Bums  by  addition,  instead  of  subtraction.    Thus,  if  the  two  sums  be 


and 
Difference 


3741.16 
1532.27 

2208.89 


But  he  must  be  taught  to  proceed  by  a  mental  process,  and  will  add  the  differ- 
ence to  the  smaller  number,  thus  :  — 

1532.27 

2208.89 


3741.16 


3741.16 


He  performs  this  operation  by  beginning  with  the  cents,  saying,  or  rather 
thinking,  "  seven  and  nine  make  sixteen,"  "three  and  eight  make  eleven," 
and  so  on.  And  thus  the  two  sides  of  an  account  are  made  to  balance,  that 
is,  both  sides  are  of  the  same  amount. 

The  principle  of  balancing  pervades  the  whole  system  of  book-keeping. 

C8) 


HINTS  TO   STUDENTS. 

ror  example,  we  know  that  if  to  the  amount  of  cash  on  hand  last  night  we 
IddtreTmunT  received  to-day,  and  deduct  the  amount  paid  to-day  the  r. 
mainderTill  show  the  amount  on  hand  to-night,  and  a  novice  would  very 
naturally  put  it  down  in  this  form :  — 


Cash  on  hand  last  night, 
Beceived  to-day, 

Paid  to-day, 
Cash  on  hand  to-night, 


$  583.71 
1623.54 

2207.25 
1856.42 

S  350.83 


But  an  acconntant  would  arrange  these  four  items  in  such  a  way  as  to  form  a 
balance,  thus  :  — 


On  hand  last  night 
Keceived  to-day 


583 
11623 


71 

54 


$  2207  25' 


Paid  to-day 

On  hand  to-night 


1856 
350 


42 
83 


2207  25 


When  he  has  placed  this  sum,  $350.83,  he  adds  up  the  whole,  mcludmg  this 
Bum,  in  order  to  check  the  operation,  and  to  be  sure  that  he  is  nght. 

It  is  sometimes  thought,  that  though  double  entry  may  be  a  very  proper 
mode  of  book-keeping  for  merchants,  it  cannot  be  advantageously  apphed  to 
such  kinds  of  business  as  manufacturing,  retailing,  &c.    This  is  a  mistake 
It  can  be  applied  to  erery  description  of  business,  and,  in  allits  use  would 
be  attended  with  advantages  which  can  never  appertain  to  single  entry 

Let  us  take  the  case  of  a  retailer,  as  for  example  that  of  a  Bt-ti-e^'  ^ 
which  the  articles  are  very  numerous,  and  the  ready  -^^-^^ ^^^^^^^^^^ 
very  small,  as  a  single  sheet  of  writing  paper,  value  one  cent.  ^^^^^^^^^^ 
a  retailer  sells  in  small  quantities,  he  does  not  usually  brcy  so.    H-  P-f^^^^ 
are  wholesale,  though  his  sales  are  retail.    His  paper  will  usually  com    irom 
a  few  houses,  his  pens  from  one,  his  ink  from  another,  and  so  on     Thes   w^ 
be  all  classed  under  the  one  general  account  of  "  '^'^'^''^^'oTtZ  a  e 
purchases  this  account  becomes  debtor,  and  the  parties  ^^  J^^  ^^//^f 
made,  or  the  cash  paid  for  them,  are  the  corresponding  credit  .  J^^- -  J 
gardshis  sales:  it  is  obvious  that  he  must  either  sell  ^^.'^'^^'^''''^''^^J. 
Lney.    In  the  first  case,  under  any  system  of  book-keeping,  ««™«^°\^"f 
be  taken  of  such  sales  :  they  will  be  entered  in  a  Sales  Book  or  a  ^^V^^J^^ 
from  which  they  are  transferred  to  the  Ledger,  to  the  debit  of  the  P-^f^^^-^^ 
and  by  double  entry  to  the  credit  of  the  merchandise  account.    In  the  second 
case,  the  sale  is  made,  the  money  put  into  the  drawer,  and  so  the  matter  ends 
If  any  money  is  received  for  a  book  debt,  some  memorandum  of  the  amount 
is  made,  and  that  deducted  from  the  whole  amount  received,  leaves  the  re- 
maining sum  to  be  entered  on  the  debit  side  of  the  Cash  for  Sales  of  Merchan- 
dise that  day,  and  by  double  entry  to  the  credit  of  the  merchandise  account.  ^^ 

This  goes  on  till  the  period  for  balancing  the  books,  when  «  stock  is  taken, 
and  the  amount  of  goods  on  hand  placed  to  the  credit  of  the  merchandise 

(9) 


BOOK-KEEPING. 


m 


account,  the  difference  between  the  two  sides  of  which  Is  profit  or  loss.  The 
expense  account  would  receive  all  payments  for  rent,  taxes,  wages,  insurance, 
&c.  The  discount  and  interest  account  would  be  like  that  of  a  merchant ;  and 
valuable  as  such  an  account  is  in  all  cases,  it  is  particularly  so  to  the  retailer. 

Interest  is  a  sort  of  commercial  moth,  which  secretly  but  constantly  eats 
into  the  profits,  and  the  precise  amount  of  mischief  ought  to  be  known. 
Many  a  retailer  would  be  astonished  if  he  saw  at  the  end  of  the  year  what  an 
item  this  had  formed  in  his  business,  and  to  what  an  extent  the  profits  calcu- 
lated upon  had  been  diminished  by  its  operation. 

Thus  it  is  evident  that  double  entry  may  be  judiciously  applied  to  any  de- 
scription of  business  :  the  utility  may  be  more  conspicuous  in  some  kinds 
than  in  others,  but  there  can  be  no  doubt  of  its  applicability  to  every  business. 
This  is  not  mere  assertion,  but  a  proved  practical  fact.  I  know  of  houses  in 
almost  all  departments  of  business  where  this  method  has  been  adopted  for 
several  years,  with  the  most  satisfactory  results. 

Full  explanations  and  directions  for  applying  these  principles  will  be  found 
at  page  ii. 


J 


GEORGE  N.  COMER'S 

DAY, 


CORRECTION. 

In  the  entry  on  the  Day  of  the  23d  March,  page  11,  the  amotint  of  a  Draft  for 
£600  at  9  per  cent,  is  erroneously  carried  out  $2904.00,  instead  of  $2900.60  j  con- 
sequently the  amount  of  the  "  Note  to  balance  "  Is  wrong.  As  It  would  occa- 
sion the  alteration  of  several  plateg  to  correct  this  error,  it  is  allowed  to  remain 
with  this  acknowledgment. 

(10) 


OR 


BOOK  OF  ORIGINAL  ENTRY, 


FOR  ALL  TRANSACTIONS  EXCEPTING 


CASH. 


<i« 


BOOK-XEEPINO. 


DAY  BOOK. 


DIRECTIONS  TO  TEACHERS. 


It  is  intended  that  the  blank  books  shall,  when  written  out,  contain  the  same 
quantity  of  matter  on  a  page  as  the  printed  books.  In  order  to  do  this  con- 
veniently, the  Day  should  have  forty-two  (42)  blu«  cross  lines  ;  that  is,  one  for 
the  heading,  and  forty -one  (41)  below  the  double  red  Unes  under  the  head  line. 
The  Cash  and  Ledger  should  each  have  forty-nine  (49)  blue  cross  lines  ;  that 
is,  one  for  the  heading,  and  forty-eight  (48)  below  the  double  red  lines  under 
the  head  line. 

In  going  through  the  books  the  first  time,  the  student  should  copy  the  en- 
tries on  the  Day  and  Cash  for  the  entire  three  months,  excepting  the  closing 
entries  on  the  Day.  Then  the  meaning  of  the  entries  should  be  explained, 
and  the  method  and  reason  of  Posting  to  the  Ledger,  (see  Explanations,  com- 
mencing at  page  34 ;)  and  to  facilitate  the  study,  and  keep  the  mind  upon  one 
book  rather  than  to  be  vacillating  between  the  books,  it  is  recommended  to 
post  for  one  month  from  the  Day,  then  from  the  Cash  for  that  month,  and 
then  take  the  Trial  Balance.  This  may  cause  the  dates  to  be  irregular,  but  the 
advantage  more  than  compensates  for  that ;  and  by  the  time  the  student  has 
gone  through  the  books  the  first  time,  his  mind  will  have  become  so  familiar- 
ized to  the  matter  of  debits  and  credits,  that  in  going  through  the  next  time 
he  ought  to  write  off  at  a  time  only  one  day's  business  on  the  Day  and  Cash, 
and  then  post  those  entries,  or  as  much  of  them  as  required  to  be  posted  at 
the  time,  just  as  he  would  in  actual  business. 

When  the  student  has  successfully  gone  through  the  second  time  he  ought 
to  be  so  far  advanced  as  to  be  able  to  take  the  "  Test  Set,"  make  the  original 
entries  in  proper  form,  and  carry  them  through  to  completion. 

It  can  never  be  supposed  that  any  written  directions  can  be  equal  to  verbal 
instruction  under  a  competent  teacher,  who  illustrates  his  advice  by  doing 
some  of  the  work  as  it  progresses  ;  but  I  have  endeavored  to  make  the  princi- 
ples BQ  clear  that  an  intelligent  student  wUl  find  little  difficulty  in  applying 

'^*^-  (12) 


Boston,  l8t  January 


1&- 


/The  year  to  be  insertr\ 
V   ed  by  the  student.   / 


Drs.       Crs. 


Sit 


Schedule  of  Assets. 
Merchandise,  per  Stock  Book 
Ship  Sultana,  my  5-lOths.    Cost 
Eeal  Estate  at  Brookline,  valued  at 
Cash,  per  Cash  Book 
Bank  of  Commerce,  on  deposit 
Bills  Receivable,  per  Bill  Book 
Albert  Knowles  owes  me 

Robert  Vanevar 
Samuel  T.  Gordon 
Rollins  Bros.  &  Co. 
Henry  Underwood 

Schedule  of  Debts. 
Bills  Payable,  per  BiU  Book 
William  Jones 
Quincy,  Dane  &  Co. 
Daniel  Davis 
George  N.  Comer 


_2d. 


13 


William  Jones, 

For  50  Rms.  White  Laid  Letter 
5Q     u  «     Wove 

50     «       Blue  Laid 
50     ((  ««     Wove 

400  Gross  Comer's  Steel  Pens 


100 


100 
_3d 


6 


Case,  Wilson  &  Co. 

For  50  Bbls.  Super.  I  lour 
50     "     Family 
10     "     No.  1  Mackerel 
10     "     Mess  Beef 
10     «        "     Pork 
10  Boxes  No.  1  Soap 
Gross  743  lbs.    Tare  59  lbs. 

____-CR.— 
For  their  Note  at  6  mos 


,  (IS) 


BOOK-KEEPING. 


Id 


Boston,  5th  January,  18 — 


Drs. 


Crs. 


14 


QuixcT,  Dane  &  Co. 

For  16  Hhds.  N.  O.  Sugttr 


Cr. 


Gross 
Tare 

Net 


cwt. 
245 

17 


qri. 
0 


Iba. 
16 

12 


227      3       4 
"  200  Boxes  Malaga  Baisins 
8th 


e  $7-50 
2.25 


SOAMES,  SMYTHE  &  Co. 


Cr. 


612C1 


For  10  Bags  No.  1  Lamb's  Wool 


Mark. 

Iftt 
187 
194 
185 
156 


Weight. 

lai 

185 
190 
182 
154 


12 


8»4 
_844 

1738 


Tare. 
3 
3 
3 
3 
3 

15 
14« 


Mark. 

161 
182 
178 
165 
173 


Weight 
159 
179 
174 
162 
170 


Tare. 
3 
3 
3 
23 
3 


&H        143 

$ 

293=1708»@  .50  =  854.25 
Dis.  1>B  8.54 

10  Bags  ®  .75 
_Dr. 


845.71 
7.50 

853.21 
3a3.21 


For  my  Note  at  6  raos. 

Cash  to  Balance,  $303.21. 
10th 


17     Alfred  Arxot,  Berbice,                                Cr. 
For  25  Hhds.  Sugar  received  per  Christina, 
Cap_t#  Gale 
^     >^  37  @  61.    Net  431.0.21                     ®  .08 
12th 


Bank  of  Commerce,                                     Cr. 
For  Check  for  Specie  to  pay  Duties  on  Sugar 
from  Berbice 
"    Check  to  Capt.  Gale,  for  Freight,  &c. 
r 13th 


18 


William  Smithsox, 
For  11  Bales  Shirtinffs 


r 


A  276-610 
277-609 
278-617 
279-615 


280-614 
281-614 
282-611 
283-626 


Dr. 


284-618 
286-617 
286-617 

6768  @  .07> 


1708 
450 


30 


42 

I 
00 


5126130 


550  00 


3449 


68 


828 
317 


5o; 


00 
50 


60 


2158 


650  00 


42 


3449 


68 


1145 


507  60 


50 


$!|  59072:50  59072,150 


(14) 


DAY  BOOK. 


Boston,  l&th  January,  18— 

Drs. 

Crs. 

-• 

•- 7~ 

$ 

69072  50 

59072  60 

17 
12 

Alfred  Arxot,  Berbice,                              ^^^ 
For  my  Acceptance  his  Draft  at  20  days' 
sight,  favor  of  James  Brown 

2500  00 

2500  00 

1  Sth — 

500  00 

500  ( 

19 
20 

George  C.  Naylor,                                     ^^^ 
For  my  Order  on  OUvera  &  Co.  for  100  Tons 
Pictou  Coal                                         ®  $5.00 

30 

^n+h 

2000 

12 

Robert.  Elliott,                                          ^r. 
For  my  Note  due  18th  March, 

given  up 

T)R 

00 

1 
12 

For  215  Bbls.  Flour                                ®  ^^-^ 
«    my  Note  at  3  mos.  due  23d  April 

1290  00 
710  OC 

22d.     ._ 1 

2000  OC 

»      2000 

6 
6 

BANK  OF  Commerce,                                    ^^' 
For  Hiram  Low's  Note,  due  16th  February, 
deposited  for  collection 

00 

C.n. 

5 
28 

For  Check  to  Eliot  Ins.  Co.  for  Insurance 
of  Merchandise  in  Store 

111  00        111 

00 

1                                           ?M. 

11 

Henry  Underwood,                                   Cr. 

For  B.  Dodd's  Note  at  8  mos.,  beuig  his 

6 

Composition  of  50  per  cent. 

225  00 

21 

«    Abatement  to  Balance 

225  00       450 

00 

11 

04tT, 

1 

3 

House  at  Brookline,                                 I>k. 

1 

12 

For  my  Note  to  Firemen's   Ins.  Co.  for 
Premium 

130  00        13G 

00 

oufh.                      — 

Joseph  Woods,                                            ^^' 

12 

For  my  Note  at  2  mos. 

750  00; 

Cr. 

r 

6 

For  his  Note  of  same  amount,  date  and 

time,  exchanged  for  his   accommoda- 
tion 

>    67513 i 

750  00 

■ 

t 

V)    67513  60 

1 

(16) 


BOOK-KEEPING. 


Boston,  2(Sih  January,  18— 


Drs.         Crs. 


23 


24 

22 

25 

6 


17 


Estate  of  the  late  Edward  Evans,      Cr. 
For  the  following   Property  (as   per  Ap 
praisal  from  Probate  Court),  which,  as 
Administrator,  I  hold  in  trust  for  the 

Heirs  — 
House  and  Land  at  Waltham 
75  Shares  Exchange  Bank  Stock 
30       "     Western  R.  R.        *' 
John  Todd's  Note,  due  23d  June 

27th — 

Alfred  Arnot,  Berbice,  !>»• 

For  Peros  &  Co.'s  First  of  Exchange  on 
Youles  &  Wians,  remitted  this  day,  for 
which  I  gave  my  check  on  the  Bank  of 
Commerce. 
Premium  2^  $18.99.    Paid  in  Cash. 

29th.  _ 


67513 


50 


16 


26 
27 


George  N.  Comer,  ^r. 

For  the  following  Property,  received  of 
the  Executors  of  the  late  Charles  New- 
hall,  being  part  of  the  Legacy  left  me 

by  him — 
Farm  in  Watertown,  valued  at 
40  Shares  Fitchburg  R.  R.  Stock 
30th 


Bank  of  Commerce,  ^^* 

For  Nolan  Reed's  Note,  due  27th  February, 

deposited  for  collection 
31st ■ 


24 


House  at  Waltham,                                  ^^ 
For  Clieck  to  Boston  Mutual  Fire  Ins.  Co. 
for  Premium 
aiRf.. . 


10 


Rollins  Bros.  &  Co. 
For  100  Bbls.  Mess  Beef 
50     «'        "     Pork 
50     «        "     Mackerel 


Dr. 

@  $19.25 
19.00 
16.00 


67513  5(1 


9500  00 
7500  00 
3000  00 
1000  00 


^9 


21000  00 


68 


949  68 


6000 
4000 


00 
00 


760 


10000 


00 


00 


760 


00 


196 


1925 
950 
800 


104093 


00 


00 

oo| 


195  00 


3675  00 


104093118 


(16) 


18 


21 
5 

35 
29 


20 


12 


30 


31 


19 
30 


DAY   BOOK. 
Boston,  1st  February,  18— 


WILLLIM  SMITHSON, 

For  10  Pieces  Black  Silk, 

10      "     Irish  Linen,      275  " 

5  "     Black  Cloth,      125  " 

6  «     Black  Doeskin,  112  " 

Cr 


Dr 

387  yds.    @  $1.05  ■ 


.03 
3.25 
1.16 


For  his  Note  at  3  mos.  in  account 
2d 


New  England  Mutual  Life  Ins.  Co.,      Dr. 
For  Check  for  Annual  Premium 

Cr — 

For  their  Life  Policy  of  Assurance,  payable 
to  my  Assigns  at  my  decease 
4th — _ 


Olivera  &  Co., 

For  21  Bales  Shirtings 

5tb. 


Dr. 


12,873  yds.  Q  .082 


Real  Estate  at  Buookline,                      Cr. 
For  the  following  Items  received  from  the 
Firemen's  Insurance  Co.  for  Damages 
done  to  the  Buildings  by  Fire,  on  the 
2d  iust. 
"my  Premium  Note  given  up 
"  their  Check    on    Columbian   Bank   de- 
posited in  Bank  of  Commerce 
6th — 


Bank  of  Commerce,                                     Cr. 
For  my  Check  for  Freight,  &c.,  of  Mdse. 
received  on  Consignment  from   Defree 
&  Co.,  New  Orleans,  to  be  sold  on  their 
Account 
«  my  Check  for  their  Draft  at  Sight  in 
favor  of  F.  Tatlock 
8th 


George  C.  Naylor, 

For  Defree  &  Co.'s  Merchandise 


Dr. 


Drs.   Crs. 


I 
400  35 

173:25 

I 
400  25 

129  92 


1623 


232 


8000 


37 


00 


00 


1094 


20 


1^1 


13^00' 


1870 


300 
1800 


00 


00 
00 


2200.00 


$ 


Id 


18365  j  34 


1115 


1623 


232 


8000 


7? 
37 

00 

00 


1094 


20 


2000  00 


2100  00 


2200  00 


1&305  34 


2* 


(17) 


e 


BOOK-KEEPING. 


DAY  BOOK. 


Bosionj  9th  February^  18— 


Drs. 


Crs. 


'« 


6 

sa 


34 


14     QciNCY,  Dane  &  Co.,                                    Dr. 
For  my  Check  for  this  Bum  advanced  in 
consideration  of  Invoice  of  Merchandise 
received  on  Consignment,  for  sale  ou 
their  Account 
12th 


M.  LovERiNG,  Dr. 

For  250  Ems.  White  Wove  Letter, 

®  4  mos.    S  $3.       $750 
««    250    «      Blue  Laid  Letter, 

@  6  mos.    @  $3.         750 

Cr 

For  S.  Jones'  Note,  Ist  Feb'y,  6  mos. 
"    William  Hews'  Note,  2Gth  Nov.,  5  mos. 
"    N.  Coe's  Note,  6th  Nov.,  4  mos. 
"    Interest  to  Average 
"    Cash  to  Balance,  $432.29 
13th 


William  Holmes,  Dr. 

For  2  Cases  Dark  Brown  Cloth,  3  6  mos 

^  559    12  pieces    247 
663    13      "         2f»3 

1  510  yds.  @  2.62« 

30  "    Defree  &  Co.'s  Merchandise,  ®  3  mos. 

33  "    Quincy,  Dane  &  Co.'s   «  4    " 

Cr 

For  his  averaged  Note  dated  28th  Jan.  @  5  mos. 
14th 


Shipped  to  Philadelphia,  and  consigned  to  Felix 
Zahnt  to  be  sold  on  my  Acceunt — 

cwt.  qri.   lbs. 

6  Casks  Cocoa,    Gross  26     2       4 
Tare       1     2     23 


24     3 
200  Boxes  Oranges 
200      "      Lemons 
100      ««      Muscatel  Raisins 
200  Drums  Figs 
100  Bbla.  Bald\vin  Apples 
60    "      Cranberries 


6 


@9.90 
2.95 
2.12 
2.25 
1.65 
2.00 
7.25 


$ 


18366  34 


(18) 


600  00 


500  00 

i  I 
300  00 

I  I 
250  00 


1338 


71 


75 


800  00 
95000 


245  62 
690 1  Oo' 

424  OOJ 
225I00I 
330|00, 

20000! 
362I5O1 


25398  92 


18365  34 


600 


1067 


00 


71 


3068  76 


2377  12 


25398:93 


Boston,  ibth  February,  18— 

DR9 

• 

Crs 

• 

$ 

25398 

92 

25398 

92 

36 

CONSIG^fMENT  FROM  VAUGHN  LLOYD,            DR. 

For  my  Check  for  Duties  on  Merchandise 
received  per  Ship  Snowflako,  from  Glas- 

1 

5 

gow,  for  sale  on  his  Account 

650 

00 

650 

00 

Shipped  per  Wanderer,  Capt.  ]Martin,  and  con- 

37 

signed  to  Davis  &  Moore,  St.  Thomas,  to 

• 

38 

be  sold  on  Account  of  Elias  P.  Young 
and  myself 
Invoice  of  Flour  bought  of  R.  Jones  &  Co., 

6 

and  paid  for  by  my  Check 
Invoice  of  Beef  and  Pork,  bought  of  S.  Peers, 

5000 

00 

12 

for  my  Note  at  3  mos. 
Invoice  of  Soap  and  Candles,  bought  of  T. 

4500 

00 

38 

Lane  &  Son,  for  E.  P.  Young's  Note 
Freight,  Shipping  Charges,  Insurance,  &c, 

6500 

00 

38 

paid  by  E.  P.  Young 
19th. 

1375 

00 

i 

16375 

00 

39 

Felix  Zahnt,                                              Dr. 

30 

For  Defree  &  Co.'s  Merchandise 
10th 

2800 

00 

2800 

00 

30 

Consignment  from  Defree  &  Co.,            Dr. 

Per  Account  Sales  rendered  this  day — 

40 

For  Commission  5  per  cent,  on  total  Sales, 

$5800 

290 

00 

41 

"    Guaranty  on  ditto  22  per  cent. 

145 

00 

28 

"    Advertising 

15 

50 

31 

"    Defree  &  Co.  Net  Sales  to  Balance 

9Mh. 

5043 

25 

6493 

75 

38 

Elias  P.  Y'^oung,                                          Cr. 

6 

For  his  Note  at  GO  days,  to  close  Account— 

due  24th  April 

1312 

50 

1312 

50 

91  Bt. 

42 

Vaughn  Lloyd,  Glasgow,                             Dr. 
For  my  Acceptance  his  Draft  in  favor  of  K. 
Slack,  at  20  days'  sight,  £800 

12 

Exchange,  9^ 

3875 

55 

72 

1 

3875 

55 

1 
$ 

55905 

55905 

72 

(19) 


\m 


44 
46 

46 

33 


12 

1 
1 


43 
32 


BOOK-KEEPING. 


Boston,  22d  February,  18— 


DBS. 


Crs. 


Shipped  per  Dauntless,  Captain  Rcid,  and  con- 
signed to  K.  &  II.  Parkinson,  London, 
to  be  sold  on  joint  Account  of  them, 
George  A.  Thompson,  and  myself — 

The  remainder  of  Quincy,  Dune   &  Co.'s 
Consgt.  taken  at  highest  market  value 

Invoice  of  Flour,  bought  of  G.  T.  Bates,  for 
my  Check  on  Bunk  of  Commerce 

Invoice  of  Indian  Meal,  bought  of  J.  Kent, 
for  my  Note  at  60  days 

100  Bbls.  No.  1  Mackerel  @  $15.00 

100    «      Mess  Beef                                        19.25 
23d 


33     Consignment  from  Quincy,  Dane  &  Co.,  Dr. 
Per  Account  Sales  rendered  this  day  — 

40  For  Commission,  2^  per  cent,  on  total  Sales, 

$22-20 

41  **    Guaranty  23  per  cent,  on  $2*220 
28            »«    Advertising 

14            «    Quincy,  Dane  &  Co.,  Net  Sales  to  Bal. 
26th 


Bills  Receivable,  Or. 

For  William  Holmes'  Note  of  28th  Jan. 
at  5  mos.,  discounted  at  the  Bank  of  the 
Republic  this  day  —  passed  to  my  credit 
in  Account 
*'    Discount 

28th 


55905 


Louis  J.  Ripley,  Dr. 

For  V.  Lloyd's  entire  Consgt.  subject  to  de- 
36  fcenture  for  exportation  7683.50 

Cr 

For  his  Note  at  4  mos. 

Balance  in  Cash,  $2683.50 

. 28th 


6     Bank  of  Commerce,  Dr. 

6  I        For  Jos.  Wood's  Note  of  25th  Jan.  for  colL 


1270  00 


72 


3800 

3565 
1500 
1925 


00 

00 
00 
00 


55  50 
55  50 
11 


/i>| 


2090 


3024  40 


61 


5000 


35, 


00 


750 


790i: 


00 

H 

97 


55y05  72 


12000  00 


2213  50 


3088 


75 


50C0  00 


750100 
97 


39 


34 


30 
40 

41 
42 


5 
6 

5 
3 


14 
2 

43 


45 


48 


pa 

c  S 

i  I- 


?9017 


I 


(20) 


DAY    BOOK. 
Boston,  1st  March,  18 — 


9 


Drs.        Crs. 


Felix  Zahnt,  Philadelphia,  Dr. 

For  Amount  Net  Sales  of  my  Consign- 
ment per  his  Account  Sales  received 
this  day  ^ 

2d 


Consignment  from  Vaughn  Lloyd,         Dr. 

Per  Account  Sales  rendered  this  day  — 
For   Commission,    5   per    cent.,   on   total 

Sales,  $7683.50 
"    Guaranty  22  per  cent,  on  $5000 
"    Vaughn  Lloyd,  Net  Sales  to  Balance 
Average,  due  4th  June 
3d 


Bank  of  Commerce,  Dr. 

For  N.  Coe's  Note,  6th  Nov.,  due  9th  inst., 
deposited  for  collection 

Cr 

For  Check  to  Firemen's  Ins.  Co.  for  Re- 
insurance of  House  at  Brookline 

, _  5th 


Quincy,  Dane  &  Co.,  Dr. 

For  my  Bill   of  Sale  of  tVth  of  Ship 

Sultana 
"    Check   on   Bank  of  the   Republic,  to 
Balance 


.6th. 


R.  &  H.  Parkinson,  Manchester,  CR. 

For  my  half  first  cost  Invoice  of  Mdse. 

received  per  Eagle,  to  be  sold  on  joint 

Account,  £1500.0.0 

Exchange,  9^  7266.66 
— 7th 


Dr. 


Swift  &  Winn,  (Cash  within  ten  days,) 

For  10  Pieces  Irish  Linen,         187  @  .83  $155.21 
10      ' 


'      Scotch  Cambric,  123      .50 
10      ««      French  Merino,  310     .52 


61.50 
161.20 


$377.91 


(21) 


3041 


384 
125 

6498 


00 


3041 


09 


250 


130 


3000 
2549 


3633 


17i 
00 

03 


00 


00 


33 


7007 


250 


130 


5549 


3633 


20 


00 


00 


17 


33 


19610  70    19610170 


10 


BOOK-KEEPING. 


7 
1 


13 

1 


■0^.5 
o 


19 
26 

43 
19 


Boston,  8th  March,  18— 


Drs. 


Crs. 


Albert  Knowles, 

For  95  Bbls.  Family  Flour 
9th 


Cr. 

e  $5 


WILLIA3I  Jones, 

For  50  Bbls.  Family  Flour 
10th 


Dr. 

@  $6.25 


G.  T.  Reid,  (To  be  settled  for  in  a  few  days,)  Dr. 


For  16  Hhds.  N.  O.  Sugar 


Gross 
Tare 


cwt.  qrs.  lbs. 
245    0    16 

17    1     12 


227    3 
.  12th.  _ 


4      @  OSa     1936.21 


George  C.  Naylor, 

For  my  Deed  of  Farm  in  Watertown 
Cr 


Dr. 


For  this  Amount  deposited  by  him  to  my 

Credit  in  Bank  of  the  Republic 
15th 


31     Defree  &  Co.,  Dr. 

For  my  Draft  of  this  date  on  Felix  Zahnt, 
remitted  to  J.  D.  Bean,  N.  Y.,  on  their 
39  Account,  per  advice 

16th 


39     Felix  Zahnt,                                                Cr. 
6          For  his  Note  of  this  date,  at  60  days,  to 
Balance  Account 
32            «    Interest  added 
19th 


48     Merchandise  Co.  R.  &  H.  P., 
46          For  R.  &  H.  Parkinson's  half  first  cost 
45            "    their  half  profit 
21            "    my     half  profit 
20th 


Dr. 


G.  T.  Reid,  Cr. 

For  Sampson  Snow's  Note  at  6  mos.,  from 
6th  Oct.,  his  favor  on  Ace.  of  Mdse.  sold 
him  on  the  10th  inst. 
Balance  in  Cash,  f  136.21 


19610 
475 

312 


6550 


8750 


70 
00 

50 


3243 


2597 
27 


3633 
304 
304 


1800 


00 


00 


25 


33 
17 
17 


00 


19610 
475 

312 


6550 


8750 


70 
00 

50 


00 


00 


3243 


2625 


25 


02 


4241 


1800 


67 


00 


$1  47608  14!    47608;  14 


(22) 


DAY  BOOK. 


11 


Boston,  23d  March,  18— 


Drs. 


Crs. 


47 


45 


Thomas  Hall,  dr 

For  my  Deed  of  Five  Lots  of  Land  at 
Chelsea,  Nos.  2,  4,  5,  6,  7,  on  plan  drawn 
by  G.  W.  Light 

Cr 

For  his  Draft  on  Smythe  &  Hall,  London, 
for  £600.    Exchange  @  9^.    Remitted 
the  above  Draft  to  R.  &  H.  Parkinson, 
on  account 
"    his  Note  at  30  days,  to  balance 
24th 


$11  47608 


6000 


43 
3 


Bank  of  the  Republic,                             Cr. 
For  Check  to  J.  Wales  in  full,  for  rebuilding 
house  at  Brookline 
28th 


32 


Joseph  Wood,  Dk. 

For  Check  on  Bank  of  Commerce,  to  take 

up  his  Note  of  26th  July 
"    63  days'  Interest 

Cr 

For  his   Note   of  this   date   at   60  days, 
with    interest    added,  to    renew    the 
above 
— 3l8t 


Z.  P.  Brandt  &  Co.,  Cronstadt, 


Cr. 

For  20  Bales  Rus.  Leather,  100  sks.  each  3862S7 
Charges. 

For  Entry  &  Customs  so    Shipping,  &c.3«    66.00 

27.00 
21.56 
19.56 
69.34 
89.34 


Mats  &  Weighing,  20  ks.  per  pood 
Bracking 9-78    Cartages    Postage 2.78 
Brokerage  &  Commissions 
Del  Credere  «   Bill  Brok'ge  &  Stamps  21-34 
Consular  Certif.a-er    int.  on  3862.47  86.6T 
75  cts.  =  1  silver  rouble.  4155,27 

— Dr 

For  Check  on  Bank  of  Commerce  for  their 
Draft  at  sight 


14 


00 


2000 


00 


47608 


750 

7 


00 
88 


3116 


45 


58482147 


14 


2904  00 
2096  00 


2000  00 


757  88 


3116  45 


58482  47 


hJ!??,?""*  ffiust  stop  here  nntil  the  whole  1«  posted,  and  a  Trial  B»lanc«  for  tbo  montb  taken. 
He  may  then  proceed  to  make  the  closing  entries,  as  foUows  :  - 

(23) 


12 


BOOK-KEEPING. 
Boatan,  3l<<  March,  1»- 

ESTATE  OF  THE  LATE  EdwaRD  EvANS,         CR. 

For  Dividend  on  Exchange  Bank  Stock 
"    Dividend  on  Western  R.  K.  Stock 

Dr 

For  Insurance  on  House  at  Waltham  $195 

Less  Kent  received  jg^ 


!>!»•        Crs. 


House  at  Waltham 
Exchange  Bank  Stock 
Western  R.  R.  stock 
John  Todd's  Note  due  23d  June! 
31  St.  __^^ 


£  -  -^  S  K  a  o 
-■?  23  t  «  2 
t.  .-  «-■  tP  s  o 
o      •c^vs  o 

■"  c  s  r  ••  -^  • 


300 
120 


00 

00        420 


00 


45  00  I        45  00 
9500|00| 
7500  00  I 


16 


Schedule  of  Assets,  to  be  credited,  pro /orma, 
to  their  respective  accounts,  to  balance  the 
books  — 

Merchandise  per  Stock  Ace.  taken  this  day 

Ship  Sultana,  my  i^th,  appraised  at 

Real  Estate  at  Brookline,  «         k 

Roal  Estate  at  Hiolsea,  3  lots,         ««         <c 

Cash,  per  Cash  Book 

Bank  of  Commerce,  on  deposit 

Bank  of  the  Republic,  on  deposit 

Bills  Receivable,  per  Bill  Book 

Fitchburg  R.  R.  stock 

Life  Insurance  Policy,  X.  E.  M.  L.  Ins.  Co 

Shipment  to  St.  Thomas 

Shipment  to  London 

$82,762.76 

Schedule  Of  Debts,  to  be  debited,  pro/om«,  to 

their  respective  accounts,  to    balance  the 

books  — 

Bills  Payable,  per  Bill  Book 

Suspense 

Vaughn  Lloyd,  on  book  account 

R-  &  H.  Parkinson,  "  <« 

23,894.31 

68,868.45 


3000 
1000 


00 

00  i  2100e^ 


6700  00 

11000  00 

10500  00 

3000  00 

260  21 
3906  25 
6725,23 
17463!57 
400o|oO 
8000  00 
8187 1 50 
4020  00 


12625  00 
8000  00 

2622148' 
&I683' 


George  X.  Comer,  Net  Capital 


$82,762.76 


58868 


45 


•,,104227J7^'|1042277« 


21 
1 
2 
26 
27 
34 
40 
41 
47 
21 
3 
28 
32 
16 


DAY  BOOK. 

Boston,  3l8t  March,  IS- 


IS 


Drs. 


Crs. 


« 

(( 


(( 
(( 

(C 

(( 
<( 
(( 


Profit  and  Loss, 

For  Gain  on  3Ierchandise 
"       "     "  Ship  Sultana 

"  Farm  in  Watertown 
"  Fitchburg  R.  R.  Stock 
"  Shipt.  to  Philadelphia 
"  Commission 
"  Guaranty 

"  Real  Estate  at  Chelsea 
Dr.__ 


For  Loss  on  Real  Estate  at  Brookline 
"    Expense 
"    Interest 
"    George  N.  Comer's  Net  Gain  to  close 


512  00! 
160  00! 

492  88 
729  67 
325 '50 


1935 


00 


385  00 
1769 1 00 

41191 
8868  45 


11386 


18 


126678 


30 


2195 


91 


8868  45 


126678  30 


v-»; 


(24) 


JL 


I' 


GEORGE  N.  COMER'S 


CASH  BOOK, 


OB 


BOOK  OF  ORIGINAL  ENTRY, 


FOR  ALL 


I 


CASH  TRANSACTIONS. 


^.t 


(«7) 


18— 


Jantuiry. 


BOOK-KEEPING. 


Cash  Received. 


^«®'  Date 
Page.  ;^^«^ 


1 

2 

3 

5 

6 

8 

13 

16 

19 

22 

24 

26 

26 

27 

29 


8 


10 
23 

16 

1 
4 


18— 

2 

24 

8 

19 


3 
5 
6 


Amouut  on  hand,  per  schedule 
Sales  of  Merchandise 
Albert  Kuowlea,  on  account 
Sales  of  Merchandise 
Samuel  T.  Gordon,  on  account 
Sales  of  Merchandise 

do.  do. 

Robert  Yanevar,  on  account 
Sales  of  Merchandise 

do.  do. 

do.  do. 

KoUins  Bros.  &  Co.,  in  full  ^ 

Estate  of  the  late  Edward  Evans 
Sales  of  Mercliandise 
G.  N.  Comer,  per  Ex'rs  C.  Newhall 

Merchandise 

Miscellaneous 

Total 


Mdse. 


Miscella- 
neous. 


100  OOj 
200  00 


200 
300 

175 


00 
00 

00 


215  00 


563 


45 


430  50 


500 
250 

387 


478 
1000 

2000 


2183  95 


4615  00 


00 
00 

00 


00 
00| 

00 


Balance. 


February. 
Balance  from  last  month 
Captain    King,  net   Freight  of  Ship 

Sultana 
John  Holmes,  Rent  of  House  at  Wal- 

tham 
Robert  Vanevar,  in  full 
Sales  of  Merchandise 
George  C.  Naylor,  on  account  y 


516 


87 


2500 


150 


00 


W 


300  00 


500 


Amounts  carried  forward 


$    51687:     3450'00; 


00 


350  00 


6798 


95 


7148 


95 


457 


08 


457  08 


NoT«.  —  See  fac-simlle  of  tbOM  pages,  as  vrltten 
(28) 


i 


i 


CASH  BOOK. 


2 


18- 


January. 


Cash  Paid. 


Ledger 
Page. 


Date 


15 
13 
21 

5 
16 


28 

1 


3 

0 

8 

15 

17 

20 

22 
24 

26 

27 

29 
31 


18— 


5 
21 

30 


1 
1 

2 

5 


J.  Smith,  Fitting  up  Store,  &c.  ^ 

Balance  on  hand,  $400.00 
Bank  of  Commerce,  deposited 

Balance  on  hand,  $;j50.00 
Soames  &  Smythe,  iu  full  for  Mdse. 

Balance  on  hand,  $246.79 
Cartage,  Porterage,  and  Wharfage,  on 
31ereliaudise  per  Concordia 

Balance  on  hand,  $515.79 
T.  Mason,  Repairs  at  Brookline 

Balance  on  hand,  $777.79 
Read  &  Xye,  Merchandise  per  Invoice 

Balance  on  hand,  $439.12 

Balance  on  hand,  $054.12 
Daniel  Davis,  in  full 

Balance  on  hand,  $207.57 
William  Jones,  on  account 

Balance  on  hand,  $245.57 
Peros  &  Co.,  Premium  for  Exchange 
on  Berbice 

Balance  on  hand,  $057.08 
Bank  of  Commerce,  deposited 

Balance  on  hand,  $657.08 
G.  N.  Comer,  Personal  Expenses 

Miscellaneous 

Expense 

Merchandise 

Total 

Balance  to  next  month 


February. 
Sidney  Sloan,  clerk,  in  full  to  date 
Bank  of  Commerce,  deposited 

Balance  on  hand,  $1,332.08 
F.  Lincoln,  for  Sextant  and  Telescope 

presented  to  Captain  King 
H.  Tucker,  Stationery 

Balance  on  hand,  $2122.95 
Drayage  and  Labor  on  Consignment 
from  Defree  &  Co.,  New  Orleans 

Amounts  carried  forward 


out,  folded  up,  and  bound,  in  first  part  of  this  book. 
3*  (29) 


Mdse.  '  {  Expense. 


Miscella- 
neous. 


803 


31 


513 


847 


21 


00 


67 


550,00 


88 


550 


125 


26 


151 


00 


00 


00! 


500  00 


125 


950 
1500 

18 

2000 
200 


00 


5293 
550 

847 


6691 
457 


7148 


00 
00 

99 

00 
00 

99 
00 


87 
08 

95 


1500 


150 


1656 


00 
00 

25 
25 


BOOK-KEEPING. 


CASH  BOOK. 


1»- 


February. 


Cash  Received. 


Ledger 
Page. 

Date 

6 

26 

9 

10 

12 

13 

10 

17 

20 

46 

22 

43 

22 

26 

36 

28 

28 

5 

28 

Amounts  brought  forward  $ 

Andrew    IJarnos,    Kent   of    Farm   in 

Watertown 
Sales  of  Mercliaudise 
M.  Lovcring,  in  full  for  Merchandise 
Sales  of  Merchandise 
Rollins  Bros.  &  Co.,  in  full 
Sales  of  Merchandise 
George  A.  Thompson,  on  account 
Bank  of  the  Republic,  per  Check 
Sales  of  Merchandise 
Louis  J.  Ripley,  in  full  for  V.  Lloyd's 

Consignment 
Sales  of  Merchandise 
Bank  of  Commerce,  per  Check 

Merchandise 

Miscellaneous 

Total 


Mdae. 


51C8 


Miscella- 
neoui. 


2896 


323 
432 
634 

416 


223 


327 


00 
29 
00 

00 


00 


00 


16 


3150 


131 


3673 

3000 
2300 


2683 
4014 


Balance. 


19489 


00 


00 


00 

00 
00 


30 
12 

62 


457  08 


22385 


78 


22842 


1&- 

February.          Cash  Paid. 

Ledger 
Page. 

Date 
6 

m 

Amounts  brought  forward                  $ 

Mdse. 

Expense. 

Miscella- 
neous. 

151 

00 

1656  25 

12 

8 

My  Acceptance  Alfred  Arnot's  Draft, 
at  Traders'  Bank 

Balance  on  hand,  $110.70 

2500 

00 

33 

9 

Drayage,  &c.,  on  Consignment  from 
Quincy,  Dane  &  Co. 

Balance  on  hand,  $247.20 

6 

50 

26 

13 

W.  Wood,  carpenter,  Repairs  at  Farm 
in  Watertown 

Balance  on  hand,  $829.49 

175 

00 

34 

14 

Freight,  &c.,  on  Shipt.  to  Philadelphia 
Balance  on  hand,  $058.49 

171 

00 

3 

16 

J.  Wales,  for  Rebuilding   House   at 
Brookline 

Balance  on  hand,  $812.49 

500 

00 

5 

17 

Bank  of  Commerce,  deposited 

Balsmce  on  hand,  $2487.49 

2000 

00 

43 

19 
20 

Bank  of  the  Republic,  deposited  to 
open  account 

Balance  on  hand,  $487.49 
Balance  on  hand,  $903.49 

2000 

00 

47 

22 

John  Fenno,  for  Deed  of  Lot  of  Land 
at  Chelsea 

Balance  on  hand,  $403.49 

6000 

00 

36 

26 
27 

Labor,   &c.,    on    Consignment    from 
Vaughn  Lloyd 

Balance  on  hand,  $002.19 
Bullard  &  Co.,  for  Wood  and  Coal 

Balance  on  hand,  $528.19 

74 

00 

26 

30 

16 

28 

G.  N.  Comer,  Personal  Expenses 

200 

00 

43 

28 
28 

Bank  of  the  Republic,  deposited 
Sweet  &  Brown,  for   J.   Chadwick's 

Draft  at  sight,  for  Invoice  of  Mdse. 

from  Manchester,  received  per  Ship 

3000 

00 

Caledonia,  £835  11  3.    Ex.  @  $4.84 
Miscellaneous 

4044 

12 

1 

18235 

05 

28 

Expense 

.^ 

225 

00 

225 

00 

1 

Merchandise 
Total 

4044 

12 

4044 

12 

4 

22504 

17 

Balance  to  next  month 

— 

$ 

338 

69 

22842 

86 

(30) 


(31) 


BOOK-KEEPING. 


CASH  BOOK. 


6 


18- 

March.           Cash  Received. 

Ledger 
Page. 

Date 
1 

Balance  from  last  month                     $ 

wMdse. 

1  Miscella- 
j    neous. 

Balance. 

338,09 

2 

Sales  of  Morchaudise 

350 

00 

22 

3 

Exchange  Bank  Stock,  dividend 

3oo!oo 

25 

3 

Western  11.  K.  Stock,        do. 

120 

00 

27 

3 

Fitchburg  K.  K.  Stock,     do. 

IfiO 

00 

20 

5 
6 

Oh  vera  &  Co.,  in  full 
Sales  of  3Ierehandlse 

417 

00 

694 

20 

9 

7 

8 

10 

Samuel  T.  Gordon,  in  full 
Sales  of  Merchandise 
do.              do. 

321 
657 

00 

300 

00 

46 

1:.' 
15 

George  A.  Thompson,  in  full 
Sales  of  Merchandise 

262 

00 

1020 

00 

43 

16 

17 

Bank  of  the  Republic,  per  Check 
Swift  &  Winn,  for  Merchandise  sold 
7th  instant 

377 

91 

3000 

00 

48 

19 
20 

24 

28 

F.  Griflath,  net  proceeds   Mdse.  Co. 
R.  *  H.  P.,  sold  by  him  at  auction 

G.  T.  Reid,  in  full  for  Merchandise 
sold  10th  instant 

Sales  of  Merchandise 
do.              do. 

136 
465 
537 

21 
00 
00 

8250 

00 

49 

31 

P.  C.  Jenks,  returned 

2500 

00 

32 

31 

do.            Interest 

6 

00 

1 

Merchandise 
Miscellaneous 

3423 

12 

20 

16249 

4 

Total 

19672 

32 

$ 

20011' 

! 

01 

: 


i 


(32) 


IS- 

March.          Cash  Paid. 

Ledger  ^.^ 
Page.    O^tfi 

Freight,  &c.,  on   Merchandise  from 

Mdse. 

Expense. 

Miscella- 
neous. 

48        2 

Manchester  Co.  R.  &  H.  P.           $ 

. 

375 

00 

Balance  on  hand,  $313.09 

4 

Advertising— Post,  $50,  Transcript,$50 
do.            Journal 

Balance  on  hand,  $743.69 

100 
50 

00 
00 

6 

Cook  &  Stowe,  Mdse.  per  Invoice 
Balance  on  hand,  $254.89 

1500 

00 

10 

Randall   &  Evans,  Merchandise  per 
Invoice 

Balance  on  hand,  $232.89 

1200 

00 

47 

12 

George  W.  Light,  for  surveying  and 
laying  out  land  at  Chelsea  into  8 
lots,  per  plan 

Balance  on  hand,  $1187.89 

65 

00 

12 

16 
17 

My  Acceptance  Vaughn  Lloyd's  Draft 
at  Atlas  Bank 

Balance  on  hand,  $574.34 
Balance  on  hand,  $952.25 

3875 

55 

5 

19 

Bank  of  Commerce,  deposited 

4000 

00 

49 

19 

20 

24 
24 

P.  C.  Jenks,  lent  on  call 

Balance  on  hand,  $2702.25 
Gas  Company,  to  date 

Balance  on  hand,  $2803.46 
Cleaning  Store,  &c. 
Postage,  to  date 

Balance  on  hand,  $3243.21 

35 

15 
10 

00 

00 
25 

2500 

00 

12 

28 

My  Note  to  Joseph  Woods,  at  Colum- 
bian Bank 

Balance  on  hand,  $3030.21 

750 

00 

16 

30 

31 
31 

G.  N.  Comer,  Personal  Expenses 

Balance  on  hand,  $2^30.21      . 
Sidney  Sloan,  clerk,  in  full  to  date 
D.  S.  Green,  Rent  of  Store  to  date 

250 
450 

00 
00 

200 

00 

5 

31 

Bank  of  Commerce,  deposited 

3000 

00 

23 

31 

Heirs  of  E.  Evans,  by  order  of  court 

Miscellaneous 
Expense 

26 

1375 

00 

16140 
910 

55 

28 

910 

25 

1 

Merchandise 
Total 

2700 

00 

2700 

00 

4 

19750 

80 

Balance  to  next  month 

— 

1 

260 

21 

20011 

01 

(38) 


BOOK-KEEPING. 


THE    LEDGER. 


In  the  Ledger  is  contained  an  abstract  of  all  the  entries  made  in  the  other 

These  entries  are  collected  and  arran^jed  in  the  order  of  their  dates,  under 
the  names  of  the  various  accounts  to  which  they  belong. 
The  copying  of  these  entries  is  termed 

POSTING. 

The  posting  of  the  Ledger  is  conducted  in  the  following  manner :  — 

Write,  on  the  top  of  a  page,  on  the  Ledger,  the  abbreviation  Dr.  on  the  left 
hand  side,  and  Cr.  on  the  right ;  then  write,  on  the  same  line  between  the 
words  Dr.  and  Cr.,  the  name  and  address  of  the  person  or  firm  with  whom  the 
account  is  to  be  opened  ,  then  turn  to  the  Index,  and  under  its  appropriate 
alphabetical  letter  write  the  name,  (the  surname  being  first,  as  Naylor,  George 
C  ,)  with  the  number  of  the  page  at  which  it  has  been  opened  ;  (this  is  a  pro- 
tection ac^ainst  opening  two  accounts  of  the  same  name  ;)  next  write  below 
the  name  on  the  head  of  the  page,  on  the  Dr.  or  Cr.  side,  as  the  case  may  be, 
the  date,  the  page  of  the  book  from  which  the  entry  is  taken,  and  the  amount ; 
and  finally,  mark  the  number  of  the  page  to  which  it  has  been  posted  upon  the 
book  from  whence  it  was  taken,  to  show  that  it  is  so  posted. 

The  whole  object  and  design  of  the  centre  column,  or  space  between  the 
date  and  page-columns,  is  to  enable  the  book-keeper  to  introduce  a  word  or 
two,  such  as  wUl,  in  a  measure,  explain  the  entry,  and  save  the  necessity  of 
resorting  to  the  other  books.    This  is  a  great  saving  of  time. 

A  merchant  ought  to  be  able  to  take  his  Ledger  into  his  private  office,  or  by 
his  own  fireside,  if  needful,  and  read  it  intelUgently  without  being  obliged  to 
have  recourse  to  the  other  boqks  for  elucidation. 

A  Ledger  is  a  condensed  epitome  of  all  the  transactions  from  all  the  other 
books ;  but  if  it  is  too  excessively  condensed  it  loses  its  independent  character, 
and  becomes  a  mere  index  to  the  other  books. 

The  fundamental  principle  at  the  basis  of  all  book-keeping  is,  that  — 

For  every  dollar  and  every  cent  which  is  placed  to  the  debit  of  any  account, 
or  accounts,  there  must  be  a  credit,  or  credits,  to  some  account,  or  accounts, 
for  the  like  amount  of  dollars  and  cents. 

No  person  can  ever  be  in  debit  on  my  books  unless  that  person  is  absolutely 

indebted  to  me. 
No  person  can  ever  be  in  credit  on  my  books  unless  I  am  absolutely  m- 

debted  to  that  person. 

Of  course  I  mean  the  balance  of  debit  or  credit.  Illustration.  —  If  a  person 
buys  '^oods  of  me  to  the  amount  of  $.500,  and  pays  me  $300  on  account,  then 
he  is  debited  8500,  and  credited  $300,  leaving  him  "in  debit  $200 "-the 
amount  he  owes  me.  t 

(34) 


POSTING. 

I  now  proceed  to  explain  the  entries  on  the  Day  Book  and  Cash  Book)  and 
the  Posting  to  the  Ledger  of  those  entries. 


Day. 


Isf  January,  18— 
SCHEDULE  OF  ASSETS. 


That  is,  a  list  or  inventory  of  the  various  kinds  of  property  and  their  re- 
spective amounts  or  value,  with  which  I  commence  business  on  these  books. 

The  account  of  Merchandise  represents  the  storeroom  containing  that 
kind  of  property,  and  is  charged,  or  debited,  with  the  amount  which  is  put 
in,  and  credited  (for  so  much  abstracted)  with  the  amount  which  is  taken  out. 
The  Stock  Book  contains  the  particulars  in  detail.  — 

The  account  of  the  Ship  Sultana  represents  the  amount  which  she  hat 
cost,  or  is  valued  at,  and  will  be  charged,  or  debited,  for  all  outlays  upon  her, 
and  credited  for  the  freight  money,  &c.,  which  she  earns. 

The  account  of  Real  Estate  at  Brookline  represents  the  value  of  that 
property,  and  will  be  debited  with  all  outlays,  and  be  credited  with  the  in- 
come, rent,  &c.,  received  from  it. 

The  account  of  Cash  represents  the  amount  of  cash  in  the  drawer,  or  safe, 
and  will  be  debited  for  all  amounts  of  cash  received,  and  credited  for  all 
amounts  of  cash  paid. 

The  account  of  Bank  of  Commerce  shows  the  amount  of  money  on  de- 
posit, and  will  be  debited  for  all  sums  deposited,  and  credited  for  all  sums 
withdrawn. 

Note.  —  It  has  been  a  common  custom  to  keep  the  cash  on  hand  and  the 
cash  in  the  bank  iu  one  account,  under  the  general  head  of  "  Cash  ; "  but  I 
have  ever  found  that  cash  in  some  one  else's  possession  was  quite  a  diffl'rent 
thing  from  cash  in  my  own.  The  money  owing  to  nie  by  a  bank  is  in  pre- 
cisely the  same  position  as  money  owing  to  me  by  an  intlividual,  and  my 
check  upon  the  bank  is  precisely  the  same  as  my  order  upon  the  individual 
would  be.  In  either  case  I  expect  it  to  be  paid,  or  should  not  make  it.  When 
I  pay  a  person  by  check  on  the  bank,  if  I  should  enter  it  as  cash  paid,  it 
would  not  be  the  fact.  I  merely  gave  a  written  order  for  the  party  to  obtain 
the  cash  on  presentation  at  the  bank.  If  from  any  cause  tlie  check  should  not 
be  presented,  the  bank  would  owe  me  just  as  much  cash  as  though  the  check 
had  not  been  written ;  but  if  I  paid  the  actual  cash,  the  case  would  be  quite 
different.  No  good  accountant  would  ever  think  of  keeping  these  accounts 
under  the  one  head  of  Cash.  It  would  be  just  as  reasonable  to  keep  the  ac- 
counts of  all  persons  indebted  to  him  under  that  head. 

The  account  of  Bills  Eeceivable  represents  the  amount  on  hand  of  the 
written  promises  to  pay,  not  yet  due,  and  will  be  debited  with  the  amount  of 
all  written  promises  to  pay  which  may  be  hereafter  received,  and  credited  as 
those  written  promises  are  delivered  up. 

The  Bill  Book  contains  the  particulars  in  detail.  I  use  the  terms  "  Bills 
Receivable"  and  "  Bills  Payable,"  because  they  are  known  and  used  all  over 
the  mercantile  world ;  whereas  the  terms  Notes  Receivable  and  Payable  are 
mere  localisms,  and  may  be  used  or  not,  according  to  the  position  and  taste 
of  the  parties. 

The  account  of  Albert  Knowles  represents  that  he  is  indebted  on  former 
account  for  the  amount  charged,  and  will  be  credited  for  any  sums  received 
of  him. 

(36) 


BOOK-KEEPING. 


POSTING. 


The  accounts  of  Robert  Vanevar,  Samuel  T.  Gordon,  Rollins  Bro's  &  Co., 
and  Henry  Underwood,  are  in  precisely  the  same  position  as  that  of  Albert 
Knowles. 

So  that  there  are  eleven  different  accounts  debited  with  various  sums,  in  the 
whole  amounting  to  $4'.),.i50.00.  We  must  now  look  for  the  credit,  or  credits, 
corresponding  in  amount. 

SCHEDULE   OF  DEBTS. 

That  is,  a  list  or  inventory  of  the  debts  I  owe  at  the  commencement  of  busi- 
ness on  these  books,  including  the  net  capital  invested  by  me  in  the  business. 

The  account  of  Bills  Payable  represents  the  amount  of  written  promises 
to  pay  which  have  been  issued,  not  yet  due,  and  will  be  credited  for  any  other 
written  promises  to  pay  which  may  be  hereafter  issued,  and  will  be  debited  as 
Ihose  written  promises  are  taken  up. 

The  account  of  William  Jones  represents  that  I  am  indebted  to  him  on 
former  account  for  the  amount  credited,  and  will  be  debited  for  any  payments 
made  to  Iiira. 

The  accounts  of  Quincy,  Dane  &  Co.,  and  Daniel  Davis,  are  in  precisely 
^e  same  position  as  that  of  William  Jones.       • 

The  account  of  George  N.  Comer  represents  that  the  total  amount  of  his 
assets  exceeds  the  total  amount  of  his  debts  by  $38,000.00,  and  that  that  sum 
is  the  net  capital  investetl  by  him  in  this  business,  and  is  owing  to  him  from 
these  books.  If  he  should  come  into  possession  of  other  property,  and  put  it 
into  this  business,  his  account  would  be  credited  for  the  amount  so  put  in,  and 
be  debited  for  any  amounts  withdrawn  by  him. 

So  that  there  are  five  different  accounts  credited  with  various  sums,  in  the 
whole  amounting  to  $49,250.00,  tning  the  same  amount  as  the  first  eleven 
accounts  were  debited  with  —  giving  us  the  double  entry  of  an  equal  amount 
of  debit  and  credit. 

Cash.  The  amount  of  cash  on  hand  is  entered  in  the  Cash  Book,  in  order 
that  all  cash  transactions  may  appear  on  that  book.  Having  been  posted  from 
the  schedule  in  the  Day,  it  is  not,  of  course,  posted  again,  which  is  the  reason 
for  its  being  entered  in  the  outer  column  in  the  Cash. 


Day. 


2rf  January. 


"William  Jones  ia  debtor  for  merchandise  sold  to  him. 

An  account  was  previously  opened  with  him,  which  is  debited  with  the 
amount,  and  the  figure  representing  the  page  to  which  it  is  posted  entered  on 
the  margin  of  the  Day.  The  merchandise  account,  however,  is  not  credited  at 
once  with  the  amount  of  the  merchandise  delivered  to  him,  as  it  would  occa- 
sion an  unnecessary  number  of  entries  if  each  sale  was  to  be  entered  at  the 
time.  Instead  of  this  we  leave  tlie  posting  of  the  merchandise  account  until 
the  end  of  the  month,  when  all  the  merchandise  sold  during  the  month  is 
collected  together  in  one  amount  and  posted  in  one  item.  For  instance,  if 
during  the  month  we  sell,  on  credit,  to  twenty  different  persons,  merchandise 
to  the  amount  of  $10,000,  and  each  of  those  persons  has  been  properly 
debited  for  his  respective  amount,  and  at  the  end  of  the  month  the  mer- 
chandise account  is  credited  for  the  whole  $10,000  in  one  item,  the  total 
amount  of  the  twenty  debits  only  equals  the  one  credit. 

See  method  of  collecting  these  items  at  p.  41. 

See  also  article  "  Sales  Book,"  in  Appendix. 

(36) 


Cash.  2d  January. 

Received  for  Sales  of  Merchandise,  $100.  Here  merchandise  to  the  amount 
of  $100  was  sold,  and  cash  received  for  it.  For  the  reasons  above  given, 
neither  of  these  items  is  posted  until  the  end  of  the  month. 

Day.  3d  January. 

Case,  Wilson  »fe  Co.  purchased  certain  merchandise  and  paid  for  it  by 
giving  their  note.  Another  person's  note  is  always  receivable,  our  own 
always  payable.  That  is  the  distinction  between  Bills  Receivable  and  Bills 
Payable.  Having  received  their  note,  Bills  Receivable  will  be  debited,  and 
Merchandise  credited ;  but  for  the  reasons  given  in  the  explanations  of  the  2d 
instant  neither  of  these  items  is  posted  until  the  end  of  the  month.  No 
account  is  opened  on  the  Ledger  with  Case,  Wilson  &  Co.  for  the  reason  that 
tlie  transaction  with  them  is  settled. 

Cash.  A.  Knowles  is  at  once  credited  for  the  amount  received  of  him,  and 
Cash  will  be  debited  at  the  end  of  the  month  in  the  total  amount  received 
during  the  month. 

J.  Smith,  Fitting  up  Store,  &c.  As  in  all  business  establishments  there  are 
numerous  items  of  expense,  a  column  in  the  Cash  is  reserved  for  that  head. 
All  items  of  cash  paid  out  for  expenses  are  entered  as  they  occur,  and  carried 
into  that  column.  An  account  is  opened  in  the  Ledger  with  Expense,  which 
will  be  debited  at  the  end  of  the  month  with  the  total  amount  paid  out  on  the 
Expense  column,  and  Cash  will  be  credited  at  the  end  of  the  mouth  in  the 
total  amount  paid  during  the  month. 

Balance  on  hand.  The  object  of  this  is  to  ascertain,  at  the  end  of  each  busi- 
ness day,  whether  the  amount  of  cash  in  the  drawer  corresponds  with  the 
balance  shown  on  the  Cash  Book. 

Day.  5th  January. 

Quincy,  Dane  &  Co.  are  at  once  credited  with  the  amount  of  merchandise 
purchased  of  them  and  ]Merchandise  will  be  debited  at  the  end  of  the  month  in 
the  total  amount  purchased  during  the  month. 

Cash.  Sales  of  Merchandise.  See  entry  of  2d  instant.  As  all  the  entries 
under  this  head  are  precisely  the  same,  it  would  be  superfluous  to  repeat  ex- 
planations of  each  of  them. 

Cash.  Gth  January. 

Samuel  T.  Gordon,  on  account.    See  entry  of  3d  instant. 

As  all  the  entries  of  amounts  received  or  paid  on  account,  or  in  full,  are 
precisely  alike,  it  is  unnecessary  to  repeat  explanations  of  each  of  them. 

Bank  of  Commerce,  Deposited.  The  Bank  is  at  once  debited  for  the  amount 
deposited,  and  Cash  will  be  credited  at  the  end  of  the  month. 

Day.  8th  January. 

Here  certain  merchandise  amounting  to  $853.21  was  purchased  of  Soames, 
Smythe  &  Co.,  and  paid  for  by  giving  my  note  for  $550,  and  Cash  $303.21. 
Merchandise  will  be  debited  $550,  and  Bills  Payable  credited  $550.  (both  at  the 
end  of  the  month,)  because  I  received  only  $550  worth  of  merchandise  for  my 
note  of  $550.  In  posting  from  the  Cash  Book,  Merchandise  will  be  debited 
$;303.21  and  Cash  credited  $303.21,  (both  at  the  end  of  the  month,)  because  I 
received  $303.21  worth  of  merchandise  for  ray  $303.21  of  cash. 

No  account  is  opened  with  Soames,  Smythe  &  Co.  on  the  Ledger  for  the 
reason  that  the  transaction  with  them  is  ended.  The  object  of  making  such 
*  (37) 


♦  f- 


|i 


I 

.H 


BOOK-KEEPING. 


entries  on  the  books,  is  to  show,  on  one  hand,  how  the  merchant  becomes  pos- 
sessed of  certain  property,  and  on  the  other,  how  he  dispossesses  himself  Of* 
property.  In  this  case  he  received  merchandise  in  exchange  for  his  bill  pay- 
able and  cash,  which  are  all  the  facts  necessary  to  be  permanently  retained. 

Day.  loth  January. 

An  account  is  opened  with  A.  Arnot,  which  is  at  once  credited  for  the 
amount  of  merchandise  received  pursuant  to  previous  order,  and  Merchandise 
will  be  debited  at  the  end  of  the  month  in  the  total  amount  of  merchandise 
received  during  the  month. 

Day.  12th  January. 

Bank  of  Commerce  is  at  once  credited ;  and  Merchandise  will  be  debited  at 
the  end  of  the  month,  for  the  reason  that  it  cost  $lH5.oO  in  freight  and  duties 
to  import  the  merchandise  from  Berbice. 

Day.  mh  January. 

William  Smithson  is  at  once  debited,  and  Merchandise  credited  in  the  total 
at  the  end  of  the  month. 

Cash.  loth  January. 

This  is  an  additional  cost  of  the  merchandise  imported  from  Berbice.  Mer- 
chandise will  be  debited,  and  Cash  credited,  both  at  the  end  of  the  month  in  the 
totals.  Freight,  duties,  brokerage,  wharfage,  labor,  insurance,  porterage,  in 
fact  every  item  expended  upon  merchandise  previously  to  its  coming  into  our 
possession,  is  a  cost  of  that  merchandise. 

Day.  lC4h  January. 

Having  accepted,  (see  Appendix,)  that  is,  agreed  to  pay  A.  Amot's  draft 
npon  me  in  20  days,  which  means  23  days,  allovving  for  the  days  of  grace,  (see 
Appendix,)  A.  Amot  is  at  once  debited,  and  Bills  Payable  credited  at  the  end 
of  the  month. 

Cash.  17th  January. 

T.  Mason,  Kepairs  at  Brooklinc.  The  Estate  at  Brookline  is  at  once  debited 
for  the  amount,  and  Cash  will  be  credited  at  the  end  of  the  month. 

Day.  i8th  January. 

An  account  is  opened  with  George  C.  Naylor,  which  is  debited  with  the 
amount  of  my  order  on  Olivcra  <t  Co.,  with  wliom  an  account  is  also  opened, 
which  will  be  credited  for  that  amount.  At  the  first  glance,  a  transaction  like 
this  seems  to  be  of  no  benefit  to  rac.  Naylor  becomes  debtor  to  me,  and  I 
become  debtor  to  Olivera  &  Co.  If,  however,  there  should  be  an  arrangement 
betAveeu  O.  &  Co.  and  me,  by  which  they  agree  to  buy  of  me  my  mer- 
chandise to  the  same  amount  of  any  merchandise  of  theirs  which  I  can  sell, 
then  my  order  on  them  to  Naylor  is,  in  fact,  the  same  as  a  sale  of  my  own 
goods  to  Naylor,  which  could  not  have  been  effected  directly,  as  he  wanted 
goods  such  as  O.  &  Co.  dealt  in,  and  not  what  I  dealt  in. 

Day.  20^^  Jannary. 

Elliott,  who  held  my  note  for  S^'W),  which  was  one  of  the  bills  payable 
owing  by  me  at  the  commencement  of  this  business,  (see  Bill  Book,)  delivered 
up  that  note  to  me,  in  exchange  for  which  I  delivered  to  him  merchandise 

(38) 


POSTING. 

tl290,  and  another  note  for  $710 ;  consequently,  Bills  Payable  will  be  debited 
$2000,  and  Merchandise  credited  $1290,  and  Bills  Payable  credited  $710,  all  at 
the  end  of  the  month  in  the  totals.  No  account  is  opened  on  the  Ledger  with 
Elliott,  the  transaction  with  him  being  ended. 

Day.  22(f  January. 

Bank  of  Commerce  is  at  once  debited,  and  Bills  Receivable  credited  in  the 
total  at  the  end  of  the  month.  It  is  not  customary  to  debit  a  bank  for  a  note 
deposited  for  collection  until  it  is  paid.  Still  it  is  necessary  to  make  some 
record  of  the  fact,  and  I  do  it  here  merely  for  convenience.  Where  the  bill 
transactions  are  numerous,  a  separate  book  might  be  kept  for  this  purpose, 
making  the  record  at  the  time  of  all  notes  deposited,  and  debiting  the  Bank 
when  the  proceeds  have  been  by  it  received. 

In  the  second  part  of  the  entry,  the  Bank  is  credited  and  Expense  is  debited, 
the  insurance  of  merchandise  in  store  being  one  of  the  expenses  of  doing  busi- 
ness, the  same  as  rent,  fuel,  clerk-hire,  &c. 

Day.  23d  January. 

H.  Underwood,  being  unable  to  pay  in  full,  makes  a  composition  with  his 
creditors  of  50  per  cent.,  payable  in  8  months  by  the  note  of  B.  Dodd,  for  which 
Bills  Keceivable  will  be  debited  at  the  end  of  the  month.  For  the  other  half, 
or  50  per  cent.,  which  is  abated  or  lost.  Profit  and  Loss  will  be  debited,  and 
Underwood  will  be  credited  for  the  whole  amount  of  his  indebtedness  to  bal- 
ance his  account. 

The  object  of  opening  a  Profit  and  Loss  account  is  to  save  the  faecessity  of 
opening  two  accounts,  one  with  Profit  and  one  with  Loss ;  the  debtor  side 
of  the  Loss  or  Profit  and  Loss  account  showing  all  the  losses,  the  credit 
Bide  of  the  Profit  or  Profit  and  Loss  account  showing  all  the  gains. 

Day.  24f^  January. 

The  Estate  at  Brookline  is  at  once  debited,  and  Bills  Payable  will  be  credited 
in  the  total  at  the  end  of  the  month.  The  reason  why  "  insurance  "  in  this 
case  is  charged  to  the  Estate,  and  not  to  Expense,  is  because  a  separate  account 
is  kept  wath  this  Estate  for  the  purpose  of  showing  at  a  glance  all  outlays  upon 
it  and  all  income  from  it.  The  design  of  the  Expense  account  is  solely  to 
show  the  amount  of  expenses  incurred  in  the  general  business  of  buymg 
and  selling  merchandise,  and  is  not  intended  to  include  outside  and  distinct 
properties. 
Day.  25<fe  January. 

Bills  Receivable  are  debited  and  Bills  Payable  credited  each  in  the  totals  at 
the  end  of  the  month. 

This  is  one  of  those  entries  which  appear  to  be  of  no  benefit  to  me,  and  m 
fact  it  is  not,  directly,  whatever  it  may  be  indirectly.  It  is  one  of  those  trans- 
actions which  should  be  avoided  by  all  good  business  men ;  but  as  such  things 
are  by  no  means  uncommon,  I  have  introduced  the  entry  for  the  purpose  of 
showing  how  it  should  be  treated,  m  case  any  one  should  be  so  unfortunate  as 
to  have  to  make  such  a  record. 

Day.  2Gth  January. 

Accounts  are  opened  with  House  and  Land  at  Waltham,  Exchange  Bank 
Stock,  and  Western  R.  R.  Stock,  and  each  debited  for  its  respective  amount. 
Bills  Receivable  will  be  debited  at  the  end  of  the  month  for  Todd's  note.    An 

(39) 


^i* 


i. 


m 


BOOK-KEEPrXG. 


account  is  opened  with  Estate  of  the  late  Edward  Evans,  which  is  credited  for 
the  whole  amount  of  property  received  in  trust. 

Cash.  Estate  of  the  late  Edward  Evans  will  be  at  once  credited  for  the 
$1000,  and  Cash  will  bo  debited,  at  the  end  of  the  month,  for  that  amount  of 
trust  property  received  in  cash. 

^^^'  27th  January. 

A.  Amot  is  debited,  and  Bank  of  Commerce  credited.  So  lon^  as  we  have 
an  account  with  only  one  bank,  it  is  not  necessary  to  specify  the  bank  every 
time  we  draw  a  check  j  when  we  have  accounts  with  more  than  one  bank,  it 
will  be  necessary. 

Cash.  The  two  per  cent,  premium  which  T  pay  for  Peros  &  Co.'s  draft  on 
Berbice  is  a  loss  ;  for  had  Amot  drawn  upon  me  for  the  whole  amount,  instead 
of  fcr  a  part,  (see  entry  of  Kith  inst.,)  I  should  not  have  liad  occasion  to  remit 
thifTsum  to  him,  and  so  should  not  have  had  to  pay  any  premium.  Profit  and 
Loss  IS  at  once  debited,  and  Cash  will  be  credited  at  the  end  of  the  month. 

I>'^Y.  2Qth  January. 

Certain  property  having  been  bequeathed  to  G.  N.  Comer,  which  ho  puts 
into  this  business,  and  thereby  increases  his  capital,  he  is  at  once  credited  for 
the  amount.  Accounts  are  opened  with  Farm  in  Watertown  and  Fitchburg 
K.  R.  Stock,  and  each  debited  for  its  respective  amount. 

Cash.    The  part  of  the  tej^acy  received  and  put  into  this  business  by  G  N 
Comer  in  cash,  is  to  be  at  once  placed  to  his  credit,  and  to  the  debit  of  Cash  at 
the  end  of  the  month. 

I^-^Y.  30th  January. 

Bank  of  Commerce  is  at  once  debited,  and  BiUs  Eeceivable  credited  at  the 
end  of  the  month.  —  See  entry  of  22d  inst. 

I>-^Y.  31s;  January. 

House  at  Waltham  is  debited,  and  Bank  of  Commerce  credited.  —  See  latter 
part  of  entry  of  22d  inst. 

I^^Y.  31s;  January. 

Rollins  Bro's  &  Co.  are  at  once  debited,  and  Merchandise  credited  at  the 
end  of  the  month. 

Cash.  G.  N.  Comer  is  at  once  debited,  and  Cash  wUl  be  credited  in  the 
total  artlount  paid  out  during  the  month. 

It  must  be  remembt^rcd  that  the  amount  expended  by  a  merchant  for  hia 
personal  expenses  is  entirely  separate  and  distinct  from  his  busmess  expenses 


I  now  proceed  to  collect  the  items  of  merchandise,  bought  and  sold  •  bills 
receivable,  received  and  delivered  ;  bills  payable,  issued  and  redeemed  '  And 
first,  I  prepare  a  piece  of  paper  with  the  respective  headings  and  pages  of  the 
Ledger  at  which  those  accounts  are  opened.  The  accounts  alread'y  debited 
and  credited  have  the  figures  of  the  page  in  the  Ledger  to  which  they  have 
been  posted  placed  on  the  margin  of  the  Day  Book.  On  the  2d  inst  I  find  that 
Merchandise  ought  to  be  credited  $787.50 :  this  I  enter  on  the  credit  side  of 
the  Merchandise  account  on  my  paper,  and  mark  on  the  margin  of  the  Day, 
opposite  the  entry,  the  figure  1,  to  show  that  Merchandise  is  posted  in  the' 
Ledger  at  page  I.    On  the  3d  inst.  I  find  Merchandise  ought  to  be  credited 

(40) 


POSTING. 


$1223.80,  and  Bills  Receivable  debited  $1223.80.  These  I  enter  on  my  paper,  and 
mark  on  the  margin  of  the  Day  the  figures  1  and  (j  to  show  that  these  accounts 
are  posted  to  those  pages. 

Illustration. 


Ledger  Page  1. 
Merchandise, 


Date. 

Db' 

s. 

Date. 

Cr' 

8. 

DateJ 

i 

6th  2158  42 

2d  i 

787 1 50 

3d 

8th  ||  550 

3d  1223!  80 

23d 

10th  3449  68 

13th  '  507160 

2oth 

12th  1145 

50 

20th  1290 

2Gth 

31st 

3675 

|7303 

GO 

7483  90 

Ledger  Page  6.  i         Ledger  Page  12. 

Bills  Receivable.    Bills   Payable. 


Dr's. 


1223  80 

225 

750 
1000 


3198  80 


Date,  i  Ck's. 


22d  I  2000 
30th '^  760 


2760 


Date.l  De's.  Date.!  Cr's 


|l 


20th 


,2000 


2000 


8th  :  550 
16th  I  2500 

20th  jj  710 
24th!  130 
25th  I  750 


14610 


Thus,  the  total  amount  of  merchandise  bought  .  . 

"  do.  sold    .  .  . 

"  bills  receivable  received 
"  do.         delivered  . 

"  bills  payable  redeemed 
"  do.  issued  .  . 


IS 


7303.60 
7483.90 
3198.80 
2760.00 
2000.00 
4640.00 


Cash  Book. 

The  total  amount  of  cash  received is  6798.95 

"      "           "         "    do.    paid «  6691.87 

The  total  amount  of  merchandise  sold  for  cash "  2183.95 

"          do.           bought  for  cash  .  .  .  .  "  847.88 

"  cash  paid  for  expenses   ...'...  ^  "  550.00 


Tlie  whole  of  the  entries  from  the  Day  and  Cash  being  now  posted,  I  pro- 
ceed to  take  the 

TRIAL  BALA:NCE. 

And  first,  I  prepare  the  sheet  with  appropriate  headings ;  the  centre  column 
to  contain  the  names  of  the  accounts,  the  adjoining  column  at  the  left  to  con- 
tain the  page  of  the  Ledger  at  which  those  accounts  may  be  found ;  the 
•'  Amount "  columns  to  contain  the  total  of  the  debits  and  credits  posted  to 
every  account  during  the  month;  the  "Difference"  columns  to  contain  the 
differences  between  the  debits  and  credits,  that  is,  the  balance,  if  any,  remain- 
ing to  the  debit  or  credit  of  each  account  at  the  end  of  the  month.  Jn  the  next 
month  tliey  Avould  show  the  balances  for  two  months,  in  the  next  for  three, 
iind  so  on  ;  so  that  the  total  amount  of  all  tlie  debits  and  credits,  and  the  total 
balances  of  debit  or  credit  of  each  separate  account,  may  be  seen  at  a  glance.  If 
the  work  is  correct,  the  footings  of  the  "  Difference  "  columns  will  correspond 
in  amount  with  each  other  ;  the  footings  of  the  «  Amount-'  columns  will  cor- 
respond with  each  other  ;  and  as  an  additional  check,  add  together  the  footing 
of  the  amounts  on  the  Day  for  the  month  ;  the  amount  of  cash  received  and 
the  amount  of  cash  paid,  and  the  footing  of  these  amounts  will  correspond 
4*  C41) 


4 

f 


\    I 


I 


BOOK-KEEPING. 

with  the  footing  of  the  "  Amount "  columns,  and  prove  the  Trial  Balance.  If 
the  footings  do  not  agree,  there  is  some  error,  which  must  be  found  out  and 
rectified. 

It  is  customary  to  have  the  trial  balances  in  a  separate  book  for  that  purpose, 
which  is  kept  in  the  custody  of  the  mcrcliant.  There  are  various  forms  of 
trial  balances.  Where  the  accounts  are  numerous,  and  not  much  variation  in 
the  names,  the  book  may  be  prepared  to  contain  three  months'  trial  balances, 
without  re-writing  the  names,  adding  only  those  which  may  have  new  accounts 
each  mouth. 

Illustration  — in  miniature. 


Namei. 

J.VJfUARY. 

February. 

March. 

Led. 

Db's. 

Ce's. 

Db's. 

Cb's. 

Db's. 

Cb's. 

Page. 

Diffi 

Am. 

Am.| 

Difflj 

Diff. 

Am.  1 

1  Am. 

1 
Diff. 

Diff. 

Am. 

Am. 

Difl: 

• 

Day. 


EXPLANATIONS  FOR  FEBRUARY,  1&-. 

1st. 


Wm.  Smithson  is  at  once  debited,  and  Merchandise  will  be  credited  at  the 
end  of  the  month. 

In  the  second  part  of  the  entry  Smithson  is  at  once  credited,  and  Bills  Re- 
ceivable will  be  debited  at  the  end  of  the  month. 

Cash.  Balance  fro^p  last  month.  All  the  cash  received,  including  this  balance, 
and  all  the  cash  paid,  was  posted  last  month,  so  that  this  balance  cannot  be 
posted  again  ;  it  is  merely  brought  down  for  convenience  in  balancing  the  cash, 
without  having  to  turn  to  the  Cash  account  on  the  Ledger,  which  of  course 
shows  the  same  balance. 

Captain  King,  Net  Freight.  The  account  of  Ship  Sultana  is  at  once  credited, 
and  Cash  will  be  debited  at  the  end  of  the  month. 

Sidney  Sloan,  Clerk.  This  is  carried  into  the  Expense  column,  and  will  be 
debited  in  that  account,  and  the  Cash  credited  at  the  end  of  the  month. 

It  is  customary  to  open  accounts  with  the  clerks,  debiting  them  with  the 
amounts  drawn  out  by  them,  and  crediting  them  from  time  to  time  with  the 
amount  due  to  them  for  services  ;  the  effect  of  which  latter  operation  would  be 
to  debit  Expense.  In  this  set  of  books,  as  there  are  only  a  few  such  entries, 
I  have  carried  the  amount  into  the  Expense  account,  without  the  intervention 
of  an  account  on  the  Ledger  with  the  clerk. 

Day.  2d  February. 

From  this  entry  it  appears  that  the  N.  E.  M.  Life  Insurance  Co.  have 
granted  to  me  a  written  instrument,  called  a  Policy  of  Assurance,  whereby 
they  promise  to  pay  to  my  assigns,  at  my  decease,  the  sum  of  $8000 ;  the 
consideration  for  which  being  the  sum  of  $-'.'52,  paid  by  me  ;  and  further,  that 
I  shall  annually  pay  to  that  Company,  during  my  life,  the  sum  of  $232,  which 

(42) 


POSTING. 

is  called  the  Premium  of  Assurance.    The  Bank  is  credited  for  the  $232,  and 
Profit  and  Loss  debited,  because  it  is  to  me  personally  a  dead  loss  ;  at  the 
same  time,  however,  it  is  creating  a  valuable  piece  of  property  for  my  heirs 
or  my  creditors  in  case  of  disaster. 

An  account  is  opened  with  Life  Insurance,  which  is  debited  with  the  amount 
of  this  Policy,  and  one  with  Suspense,  which  is  credited  for  the  same  amount, 
for  the  reason  that  the  amount  of  this  Policy  cannot  be  received  by  me. 
During  my  life  it  is  in  suspense  —  I  am  tlie  mere  trustee,  holding  it  for  those 
who  are  to  be  benefited  by  it  after  my  decease.  No  person  or  persons  can  be 
credited  for  this  amount,  as  I  do  not  owe  any  one  any  thing  on  account  of  it. 
The  advantauge  of  keeping  such  an  account  in  this  way  must  be  apparent  to 
those  who  may  have  to  examine  the  affairs  of  deceased  persons.  It  is  a 
record  which  cannot  be  overlooked. 

Cash.    House  at  Waltham  is  at  once  credited,  and  Cash  will  be  debited  at  the 
end  of  the  month. 

Sextant  and  Telescope  presented  to  Captain  King.  In  this  case  Profit  and 
Loss  is  debited,  for  the  reason  that  although  it  may  be  a  judicious  action  to 
give  a  faithful  servant  tangible  evidence  that  you  appreciate  extra  exertion, 
still  it  was  not  absolutely  necessary  ;  it  was  not  part  of  the  agreement,  and 
cannot  properly  be  termed  an  expense.  Neither  would  it  be  proper  to  charge 
it  to  G.  N.  Comer,  because  it  is  an  outlay  on  account  of  the  business  from 
which  profit  may  arise.    Cash  will  be  credited  at  the  end  of  the  month. 


Day. 


6th  February. 


The  Bank  is  at  once  debited  for  the  amount  deposited  j  Bills  Payable  will  be 
debited  for  the  amount  of  my  premium  note  returned  to  me,  and  Real  Estate 
at  Brookline  is  at  once  credited  for  the  whole  amount  received  of  the  Insur- 
ance Company  in  settlement  of  the  damage. 


Cash. 
itself. 

Day. 


H, 


Tucker,  Stationery.    This  is  one  of  the  expenses,  and  explains 


Uli  February. 


Whenever  any  goods  are  received  on  consignment,— that  is,  for  sale  on  ac- 
count of  otlxers,  —  we  do  not  give  any  person  credit  for  those  goods,  because  we 
do  not  owe  for  them :  we  have  not  bought  them ;  we  merely  hold  them  in 
trust  on  account  of  the  consignors,  and  make  a  memorandum  entry  of  their 
receipt.  When,  however,  we  liave  occasion  to  pay  out  any  thing  on  account 
of  those  goods,  or  when  we  may  make  sale  of  any  portion  of  tliem,  then  we 
open  a  representative  account,  such  as  Consignment  from  Defree  &  Co.  This 
we  debit  with  all  charges,  and  credit  from  time  to  time  with  the  amount  of 
the  sales.  This  will  be  further  explained  upon  the  closing  of  the  consign- 
ment account. 

Consignment  from  Defree  &  Co.  is  debited,  and  the  Bank  credite*  for  the 
dieck  to  pay  freight,  &c. 

In  the  second  part  of  the  entry,  Defree  &  Co.  are  debited,  and  the  Bank 
credited  for  the  amount  of  the  check  to  pay  their  draft. 

It  is  customary  with  commission  merchants,  when  goods  are  consigned  to 
them  for  sale,  to  make  advances,  if  desired,  to  the  consignors,  for  a  part  of  the 
value  of  the  goods  consigned,  charging  interest  on  the  amount  advanced. 
But  such  advances  are  properly  u  charge  against  the  consignors  themselves, 
and  not  to  the  consignment,  although  there  is  a  lien  upon  the  goods  for  the 
amount  advanced. 

(43) 


H> 


(I 


\l 


BOOK-KEEPING. 

Cash.  Drayage  and  labor  on  consignment  from  Defree  &  Co.  Is  explained 
above. 

I>AY.  nth  February. 

George  C.  Xaylor  is  debited,  and  Consignment  from  Defree  &  Co.  is  credited. 

Cash.  A.  Arnot's  draft,  which  I  accepted  on  the  10th  ult.,  being  due  this 
day,  and  lodged  at  the  Trader's  Bank  for  collection,  I  send  the  cash  there  and 
take  it  up.    Bills  Payable  will  be  debited,  and  Cash  credited. 

Day  and  Cash.  9th  February. 

See  second  part  of  entry  of  the  Gth  instant. 
Cash.    Farm  in  Watertown  is  at  once  credited,  and  Cash  will  be  debited. 


Day. 


\2th  February. 


In  this  case  certain  merchandise  was  sold  on  four  and  six  months'  credit, 
and  then  certain  notes  of  hand,  falling  due  at  different  times  thereafter,  for  a 
part  of  the  amount,  were  received,  and  cash  for  the  balance.  As  far  as  the 
posting  is  concerned,  the  entry  is  explained  in  that  of  the  8th  ult.  Bills  Re- 
ceivable and  Interest  are  debited  for  their  respective  amounts,  and  Merchan- 
dise is  to  be  credited  for  the  amount  of  the  bills  «ud  the  interest.  In  posting 
the  cash.  Merchandise  will  be  credited  for  the  balance,  $432.29,  and  Cash  wiU  l^ 
debited. 

When  we  receive  a  bill  of  exchange,  draft,  or  note  of  hand,  in  account, 
we  give  credit  for  the  receipt,  but  it  does  not  follow  that  we  discount  the 
paper.  Discounting  bills  is  not  the  business  of  a  merchant  ;  that  is  the 
province  of  the  bill  broker  and  banker.  Such  paper  is  received  as  additional 
security  for  the  payment  of  the  debt.  In  rendering  an  account  current  we 
give  credit  for  items  of  this  charact<-r  on  tJie  days  on  which  the  cash  is,  or  is  to 
be,  received  ;  allowing  interest  on  those  amounts  received  before  the  day  our 
account  is  due,  and  charging  interest  upon  our  account  from  the  time  it  is  due 
to  the  time  of  settlement. 

In  this  case,  therefore,  the  balance  in  canh  must  be  such  a  sum,  which,  if  put 
at  interest,  would  in  the  given  time  produce  such  an  amount,  as,  added  to  the 
value  of  the  notes  at  that  time,  will  be  the  exact  amount  to  cancel  our  account. 
The  workings  of  this  transaction  will  be  found  under  the  head  of  Accounts 
Current  in  the  Commercial  Computations,  and  will  repay  a  careful  study. 


Day. 


Vith  February. 


Here  I  sold  certain  merchandise  of  my  own  on  six  months'  credit,  together 
with  a  quantity  of  that  consigned  to  me  by  Defree  &  Co.  on  three  months' 
time,  and  of  that  consigned  to  me  by  Quincy,  Dane  &  Co.  on  four  months,  and 
received  a  note  for  the  whole,  payable  in  five  months  from  the  2Sth  January, 
which  would  be  due  on  the  Ist  July,  the  day  on  which  the  above  bills  of  goods 
would  average  due. 

It  must  be  remembered  that,  although  bills  of  exchange  and  notes  carry 
days  of  grace,  accounts  do  not ;  so  that  a  note  in  payment  for  goods  ought 
to^H?  dated  at  such  a  time  as  that  the  last  day  of  grace  will  fall  upon  the  day 
when  the  credit  for  the  goods  expires. 

Cash.    Farm  in  Watertown  is  debited,  and  Cash  will  be  credited. 


POSTING. 

I*AT.  14^^  February. 

Whenever  we  consign  goods  for  sale  on  our  account,  we  cannot  debit  any 
person  for  those  goods  ;  but  we  open  a  representative  account,  such  as  Ship- 
ment to  such  and  such  a  person  or  place,  debiting  that  account  with  the  cost 
and  all  outlays  upon  the  consignment,  and  crediting  it  with  the  amount  of 
net  sales  when  advised. 

Shipment  to  Philadelphia  is  debited,  and  Merchandise  will  be  credited.  The 
same  for  the  amount  paid  on  the  cash  for  this  day. 

Day. 


See  entry  of  the  Gth  instant. 


Wth  February. 


Cash.  iQth  February. 

Estate  at  Brookline  is  debited,  and  Cash  credited. 
3^ AY.  17/^  February. 

In  this  case  I  consigned  certain  merchandise  to  be  sold  on  joint  account  of 
E.  P.  Young  and  myself.  That  is,  we  are  each  interested  one  half,  so  that 
Young  is  debtor  to  me  for  his  half,  and  Shipment  to  St.  Thomas  is  debited 
for  the  other  half.  Then  the  Bank  is  credited  for  the  check  I  drew ;  Bills  Pay- 
able is  credited  for  the  note  I  gave;  and  Young  (who  of  course  is  to  pay  his 
own  note)  is  credited  for  the  amount  of  the  note  he  gave,  and  also  for  the 
amount  he  paid  in  cash,  leaving  him  indebted  to  me,  on  this  transaction,  in  the 
sum  of  $1312.50. 

I>-AY.  iQth  February. 

Felix  Zahnt.     See  entry  of  the  8th  instant. 

I  now  render  the  Account  Sales  of  the  Merchandise  consigned  to  me  by 
Defree  &  Co. ;  but  first  I  credit  Commission  with  the  amount  of  my  commis- 
sions for  effecting  the  sales ;  Guaranty,  with  the  percentage  I  char"-e  for  Guar- 
anteeing that  the  goods  sold  on  credit  shall  be  paid  for  at  maturity";  Expense 
for  the  amount  I  charge  for  advertising ;  and  Defree  &  Co.,  for  the  net  pro- 
ceeds after  deducting  the  total  amount  of  the  charges,  including  those  previ- 
ously posted,  from  tlie  total  amount  of  the  sales.  I  then  debit  the  Consi"Ti- 
ment  account  with  the  amount  of  commission,  guaranty,  expense  and  the 
net  proceeds  transferred  to  Defree  &  Co.,  and  so  close  the  Consi^Timent  ac- 
count. ° 

Cash.    I  now  open  an  account  with  the  Bank  of  the  Republic,  debitin<^  it  for 
the  amount  deposited,  and  crediting  the  Cash  at  the  end  of  the  month.  ° 

I>AY.  20<A  February. 

E.  P.  Young  is  credited,  and  Bills  Receivable  debited. 

I^AY-  2lst  February. 

Vaughn  Lloyd  is  debited,  and  Bills  Payable  credited. 

^AY-  22d  February. 

See  entry  of  the  17th  instant.    Shipment  to  London  is  debited  for  one  third 
of  the  whole  amount  of  the  consignment,  R.  &  H.  Parkinson  for  one  third, 
and  George  A.  Thompson  one  third.    Consignment  from  Quincy,  Dane  &  Co 
is  credited  for  the  amount  of  tlieir  merchandise  taken  ;  Bank  of  Commerce  for 
my  check ;  Bills  Payable  for  my  note ;  and  Merchandise  for  my  mackerel  and 

06€I. 


:  h 
'  %. 

I ': 


'     III 


(46) 


II    p 


BOOK-KEEPING. 

<:ash.    Land  at  Chelsea  is  debited,  and  Cash  will  be  credited. 

Day.  23d  February. 

See  entry  of  the  19tb  instant. 

Day.  26/A  February. 

The  Bank  of  the  Repoblic  is  debited  for  the  net  proceeds  of  the  note  dis- 
counted, and  Interest  is  debited  for  the  amount  retained  by  the  Bank  as  dis- 
count for  advancing  me  the  money  before  the  note  is  due.  Bills  Receivable  is 
credited  for  tli»  whole  amount,  being  the  face  of  the  note. 

Day.  28/fe  February. 

Bills  Receivable  is  debited  $5000,  and  Consignment  from  V.  Lloyd  is  cred- 
ited $5000.  See  entries  of  6th  ultimo  and  12th  instant.  See  "  Debenture,"  in 
Appendix. 

Cash.    Consignment  from  V.  Lloyd  is  credited,  and  Cash  will  be  debited. 

G.  N.  Comer,  Bank  of  the  Republic,  and  Merchandise  for  Chadwick's  draft, 
•re  each  debited,  and  Cash  will  be  credited. 

Collection  of  Items  of  Representative  Accounts  from  the  Day  for  the  Month. 


Ledger  Page  1. 
Merchandise. 

Ledger  Page  6. 
Bills  Receivable. 

Ledger  Page  12. 
Bills  Payable. 

Date 

Db's. 

Date' 

Cb's. 

Date! 

_i 

Ist 

12th 
it 

Db's. 

Date 

26th 
2bth 

Cb's. 

Date 
5th 

Db's. 

Date 

17th 
21st 
22d 

Cr's. 

iBt 
4th 
12th 

1115 
lOM 
1067 

77 
30 
71 

1623 
500 
300 

37 

3088 
750 

75 

130 

4500 
3875 
3565 

55 

13th 
14th 

ia38 
2377 

75 

12 

13th 

250 
3088 

75 

— 

22d 

1500 
1925 

55 

20th 
28th 

1312 
5000 

50 

3838 

75 

130 

— 

11»10 

10118 

12074 

55 

Cash. 

Amount  of  cash  received, $22,385.78 

"        "  cash  paid,    h Zt^M.n 

«»  «'  cash  received  for  merchandise,  .  2,896.16 
"  "  cash  paid  for  merchandise,  .  .  .  4,044.12 
»'        "  cash  paid  for  expenses, 225.00 


THE  TRIAL  BALANCE 

is  taken  in  the  same  way  as  for  the  first  month,  with  the  exception  that  the 
"  Difference  "  columns  contain  the  difference  in  amount  between  the  debit  and 
credit  sides  of  every  account  which  does  not  balance  at  the  end  of  this  month. 
It  is  the  difference  remaining  to  the  debit  or  credit  side  of  the  accounts  for  ^wo 
months.  The  "  Amount "  columns  contain  only  the  amounts  posted  \4  *^^ 
debit  and  credit  of  the  accoimts  for  the  present  month. 

(46) 


POSTING. 


EXPLANATIONS  FOR  MARCH,  18-. 

DAT.  1st. 

Felix  Zahnt  having  sold  the  goods  I  consigned  to  him  for  sale,  and  rendered 
me  an  account  showing  that  the  amount  of  net  proceeds  in  his  hands  to  my 
credit  is  $3041, 1  debit  him,  and  credit  Consignment. 

Day.  2d  March. 

See  entries  of  the  19th  and  23d  ultimo. 

Cash.  R.  &  H.  Parkinson  having  sent  to  me  (agreeably  to  previous  arrange- 
ment) an  invoice  of  merchandise  to  be  sold  on  joint  account  of  them  and  myself, 
as  will  be  seen  by  reference  to  an  entry  on  the  Day  of  the  6th  instant,  I  open  an 
account  with  Merchandise  Co.  R.  &  H.  P.,  which  is  debited  fbr  the  amount 
paid  for  freight,  &c.,  and  Cash  will  be  credited  at  the  end  of  the  month. 

Day.     ^  M  March. 

Bank  of  Commerce  is  debited,  and  Bills  Receivable  will  be  credited  at  the  end 
of  the  month. 

In  the  second  part  of  the  entry  the  Bank  is  credited,  and  Estate  at  Brookline 
debited. 

Cash.  Exchange  Bank  Stock,  Western  R.  R.  Stock,  and  Fitchburg  R.  R. 
Stock  are  each  credited,  and  Cash  will  be  debited  for  the  whole  amount  received. 


Cash. 


^th  March. 


Advertising,  which  I  pay  by  contract,  is  an  expense,  which  account  is 


debited  and  Cash  will  be  credited. 


Day. 


bth  March. 


Quincy,  Dane  &  Co.  are  debited,  and  Ship  Sultana  and  Bank  of  the  Republic 
are  each  credited  for  their  respective  amounts. 


Day, 


Qtth  March. 


R.  &  H.  Parkinson  are  credited  for  my  half  of  the  first  cost  of  the  Merchan- 
dise received  of  them  to  be  sold  on  our  joint  account,  and  Merchandise  Co. 
Iv.  &  H.  P.  is  debited. 
^^^Y.  7/ft  March. 

Swift  &  Winn  having  bought  a  bill  of  goods  to  be  paid  fbr  in  a  few  days,  I 
make  the  record  of  the  fact  without  carrying  out  the  amount  into  the  outer 
columns,  to  save  the  necessity  of  opening  an  account  with  them  on  the  Led^-er. 
When  the  amount  is  paid,  I  treat  it  as  a  cash  sale  on  that  day,  and  write  on  the 
margm  of  the  Day  opposite  the  entry  that  it  is  so  paid.  If  at  the  end  of  the 
month  It  should  remain  unpaid,  I  can  either  collect  or  transfer  it  to  the  next 
montli  by  an  entry  in  the  same  way,  referring  to  the  first,  or  open  an  account 
with  them  in  the  Ledger. 

^^Y-  lOth  March. 

This  entry  is  explained  by  the  preceding  one. 

^^^-  nth  March. 

George  C.  Naylor  is  debited,  and  Farm  in  Watertown  credited. 
In  the  second  part  of  the  entry  Naylor  is  credited,  and  the  Bank  debited. 

Cash.    Land  at  Chelsea  is  debited,  and  Cash  will  be  credited. 

(47> 


i 


I: 


t 


BOOK-KEEPING. 

^^^-  iSth  March. 

Defrec  &  Co.  arc  debited,  and  Felix  Zahnt  is  credited. 
Tliia  entry  is  governed  by  the  same  principles  as  that  of  the  ISth  January. 

^^^'  .  IGth  March. 

Felix  Zahnt  is  credited  $2,597.75,  Interest  is  credited  $27.27,  and  BiUs  Ee- 
ceivable  is  debited  for  the  whole  amount,  being  the  face  of  the  note. 

Cash.    Bills  Payable  will  be  debited,  and  Cash  credited. 
See  entry  of  the  sth  ultimo. 

^^S"-  19/;^  March. 

Merchandise  Co.  R.  &  H.  P.  Is  credited,  and  Cash  will  be  debited. 
Having  lent  P.  C.  Jenks  $2500  on  call,  -  that  is,  to  be  paid  on  demand,  - 1 

Zcl  \uT  '"'T     ' """?''  ^'  ^'^^*^^  ^""^  '^^  ^'"^^'^t'  ^«d  Cash  wUl  be  credited. 
feucJ,  an  account  saves  the  necessity  of  opening  accounts  with  every  person 

^y  Sw    "^      "" ""' "'"'  "^ ''''''  *^°''  ''^"^  ^^'^^"^  ^^  ""^y  ''^^^^- 

hah^oft^;trnfif^'p''Tr  ff  '^^^"^^^^^  "'^ir  h«lf  first  cost,  and  for  their 

chiLle  Co  E  &  vjT ""h  ^r,'' "'^"''-^^ ^^•* '^y ^'^'^^ ^f  '^' Profit' ^d Mer- 
cnan-iise  Co.  K.  &  U.  p.  is  debited  with  the  whole  to  close. 

^-^^-  20^A  March. 

G.  T.  Reid  having  settled  for  the  goods  he  bought  on  the  10th  instant  it  is 
treated  as  a  sale  this  day.    Bills  Receivable  will  be  debited,  and  ilerchandise 

^hef^i^l  s:t:ii!  ^  '-''-'^  ^^  ^-^^-^-  -^^-^  for^h^tri^ 

^'^^-  2Sd  March. 

R.  &  H.  Parkinson  arc  debited  for  the  amount  of  the  bill  of  exchan^re  rc^ 
mitted  to  them  ;  Bills  Receivable  will  be  debited  for  the  amount  of  HaU'» 
note,  and  Land  at  Chelsea  is  credited  for  the  whole. 

I>'^Y.  24-^  March. 

Rank  of  the  Republic  is  credited,  and  Estate  at  Brookline  debited. 
^•^^-  28th  March. 

Joseph  Wood  heing  unable  to  take  up  the  note  he  gave  me  on  the  25th  of 
January,  due  this  day,  I  have  loaned  him  $750,  and  taken  his  note  at  CO  davs 
for  that  amount  and  the  interest  addo<l. 

Bank  of  Commerce  is  credited  $750,  Interest  $7.88,  and  BUls  Receivable  will 
be  debited  $75r.SS. 

See  entry  of  the  IGth  instant. 
Cash.    BiUs  Payable  will  be  debited,  and  Cash  credited. 
I^-^Y.  3ijff  March. 

Bank  of  Commerce  is  credited,  and  Merchandise  debited. 
Cash.    P.  C.  Jenks  having  returned  the  money  loaned  him  with  interest. 
Loan  account  and  Interest  are  each  credited  for  their  respective  amounts,  and 
Cash  will  be  debited  for  the  whole. 

Estate  of  p:dward  Evans  is  debited,  and  Cash  credited. 

The  entries  which  Iiave  no  special  explanations  are  so  similar  to  others 
previously  explained,  that  a  repetition  is  deemed  unnecessary. 

(48) 


U. 


POSTTXG. 


Colkc  Hon  of  Items  of  Representative  Accounts  from  the  Day  for  the  Month. 


Ledger  Page  \. 

M  K  R  C  H  A  N  n  I  S  E  . 


Date.'!    Dr's. 


Sth 

3l8t 


475 
311G 


45 


359145 


Date. 


9th 
20th 


Cr's. 


Ledger  Page  6, 
Bills  Receivable. 


Date.      Dr's. 


312 
1800 


50 


2112  50 


l()th 

!2;i25 

02 

3d 

20th 

ilSOO 

23d 

12096 

28th 

1  757 

88 

7278 

90 

Date. 


Cr's. 


Ledger  Page  12. 
Bills  Payable, 


Date. 


250 


250 


Dr's.    Date.  |  Cr's. 


Amount  of  cash  received, «i9  072.32 


paid, 

received  for  merchandise,  . 
paid  "  " 

"  "    expenses,    .  . 


19,750.80 

3,423.12 

2,700.00 

910.25 


THE  TRIAL  BALANCE 

is  taken  the  same  as  last  month.  The  "  Amount "  columns  to  contain  the 
amount  posted  to  the  debit  and  credit  of  the  different  accounts  for  this  month 
only ;  the  "  Difference  "  columns  to  contain  the  differences,  that  is,  the  bal- 
ance of  debit  or  credit  of  every  account  ou  the  books  for  three  months  Of 
course,  if  the  amounts  of  debit  and  credit  to  an  account  are  equal,  there  is  no 
difference. 


I  now  proceed  to  close  the  books.  The  first  thing  to  be  done  is  to  see  that 
those  persons  for  whom  I  liold  property  in  trust  are  proncily  credited  with 
any  items  of  income  whicli  I  may  have  received  (over  and  above  all  expendi- 
tures) from  any  portions  of  that  property  ;  the  net  income  of  another  person's 
property  being  as  much  theirs  as  the  original  property  itself 

Upon  examinhig  the  account  of  the  Estate  of  the  late  Edward  Evans,  I  find 
that  I  have  received  dividends  upon  the  stock,  and  rout  of  the  house,  and  have 
paid  for  insurance  of  house  more  than  the  rent  received 

creluorl  I,"^""^^"^  f "«",  f""^«  I  '^^^i^^^^  m  own  Cash  for  the  amounts,  ancf 
reivnH     T        T"    J  ""V^^"  V^^^^^^l^r  properties  from  which  they  were  re- 

Ct^^;v\^"T      ".".''T''''"^'  "'^"^'^"^^  ^'•^"^  *h«  particular  properties 
to  the  Estate,  the  estate  being  increased  by  that  amount;  and  this  I  do  by 

the  ?nT       "^  """"^  '"'7  '"^  P"^'^""  ^°  ^^^  d^^i*  of  the  accounts  from  which 

Sr  theZn  Jti'  "^T"^'  r^  "''"'''**"-  *^"  ^'^^''-    ^«  I  ^^^'^  P'"d  out  more 

the  F!f!r     Al"      'J'"*  '''^^'^"•^'  ^  *'-''^»«^'^^  '^^  d*ff^r«»««  to  the  debit  of 
the  Estate,  and  the  credit  of  the  house  te  balance  that  item. 

^^  hen  I  received  the  property  in  trust,  I  debited  each  item  for  its  appraised 

dSh^  ETtl  fo^^^^^^  ^T',  '^^  '""^  '''''  ^"^--*-    I  --  -^d^t  each  item  and 
being.  '^^''^'  ^™^"^*'  *°  '^•'^^^^^^  ^^^'^  accounts,  for  the  time 

I  next  proceed  to  take  a  schedule  of  assets. 
I  make  rnnv^if  'l^'V  ^  ^""t'^'"  '''^"'  ""^  '^''  merchandise  on  hand  is  $5700. 

thltZ^cln^TL'Tl^  of ^Ship  Sultana  is  appraised  at  $11,000,  and  I  credit 

Real  Frt«.  '^'JV        f™''""^'  *^^  '''™^  ""'  ^  ^*1^'  ^«^  ^^^  ^^^^  being. 

Real  Estate  at  Brooklme,  and  all  the  assets,  are  treated  in  the  sa^^e  way;  so 

*  (49) 


fi 


if 


BOOK-KEEPING. 

that,  havinn:  made  the  Day  Book  entries  and  posted  them,  twelve  accounts  are 
credited,  in  the  whole  amounting  to  $.**,.',7()2.70. 

Jo^orV:'^V'  ^'^^'^'"^^^of  'l^'l^t^-  I  fi"d  that  the  amount  of  bills  payable  is 
$12,6^.00.  I  niake  a  Day  Book  entry,  debiting  Bills  Payable,  the  same  as 
though  they  had  been  rodeomed,  for  the  time  bein<^. 

"Suspense,"  and  the  accounts  of  V.  Lloyd  and°R.  &  H.  Parkinson,  I  debit 
with  their  respective  amounts,  for  the  time  being,  which,  when  posted,  closes 
those  accounts,  and  they  may  now  be  added  up,  the  footings  brought  down, 
and  tlie  accounts  ruled  off. 

In  actual  business  it  is  unnecessary  to  balance  off  unsettled  accounts,  In  the 
way  now  stated.  It  is  sufficient  to  add  up  the  columns,  and  mark  the  debit 
and  credit  balances  in  a  temporary  way  with  a  pencil,  ruling  off  the  accounts 
only  when  they  are  actually  settled. 

The  assets  being  hirgcr  in  amount  than  the  debts  by  the  sum  of  $58,8r,8.45. 

??.^  I     ^r""""*  ""^  ^-  ^-  ^*'"''^'«  °*^*  <^Pi^'  fo'-  which  his  accomit  is 
debited,  for  the  tune  being. 

The  Day  Book  entries  having  been  made  and  posted,  five  accounts  are  deb. 
ited,  m  the  whole  amounting  to  $S'^,7C,2.:o-an  equal  offset  to  the  assets  credited. 
1  he  plulosophy  of  this  may  perhaps  be  more  dearly  understood  if  I  should  as- 
sume that  all  the  property  had  been  sold  for  cash,  which  would  leave  Cash  deb- 
"^'V"''  ^.'I't''"  '*'^''  amount,  and  each  account  credited  lor  its  respective  amount. 

Then,  If  I  should  assume  that  all  the  debts  had  been  paid  in  cash,  which 
would  be  croditiug  Cash,  and  debiting  eiich  account  for  its  respective  amount, 
leaving  the  balance  of  cash  on  hand  $:y%m.U,  which,  if  G.  N.  Comer  should 
draw  out,  would  have  the  effect  of  crediting  the  Cash,  and  debiting  him  with 
that  amount,  this  would  be  just  the  same  result  as  we  obtain  above,  without 
the  round-about  assumption  of  something  which  had  not  occurred 

Every  account  which  will  not  balance  with  the  entries  above  made  must  be 
closed  by  transferring  the  necessary  amount  to  the  debit  or  credit  side  of  the 
Profit  and  Loss  account  for  the  gain  or  loss  on  such  account. 

In  the  first  place  I  find  that  the  credit  side  of  the  Merchandise  account  is 
larger  than  the  debit  side  by  the  sum  of  $^2M.V^,  which  is  the  gain  on  that 
account.  I  make  the  Day  Book  entry,  giving  Profit  and  Loss  credit  for  that 
amount,  which,  when  posted,  debits  3Ierehandise,  and  so  closes  that  account, 
which  may  now  be  added  up,  the  footings  brought  down,  and  the  account 
ruled  off. 

The  accounts  of  Ship  Sultana,  Farm  in  Watertown,  Fitchburg  R.  R.  Stock, 
Shipment  to  Philad.lphia,  Commission,  Guaranty,  and  Real  Estate  at  Chelsea 
are  each  treated  hi  the  same  manner  as  the  .Merchandise  account ;  and  Profit 
and  Loss  is  credited  for  the  whole  amount,  $ll,.'tef.,l8. 

I  find  that  the  debit  side  of  the  Real  Estate  at  Brookline  is  larger  than  the 
credit  by  the  sum  of  $.385,  which  is  the  loss  on  that  account.  I  make  the  Day 
Book  entry,  debiting  Profit  and  I^ss  for  that  amount,  which,  when  posted, 
credits  the  Real  Estate,  and  so  closes  that  account,  which  may  be  added  up, 
the  footings  brought  down,  and  the  account  ruled  off.  The  accounts  of  Ex- 
pense and  Interest  are  each  treated  in  the  same  way,  and  Profit  and  Loss  is 
debited  for  the  whole  amount,  $,'195.91. 

I  now  find  that  the  credit  side  of  the  Profit  and  Loss  account  is  lar<-er  than 
the  debit  by  the  sum  of  $«8<-.s.45,  which  is  the  net  gain  to  be  transferred  to  the 
cre(ht  of  G.  N.  Comer's  account,  and  if  the  books  have  been  correctly  kept, 
will  be  found  to  be  just  the  amount  necessary  to  balance  his  account,  so  that 
every  account  in  the  Ledger  in  now  closed. 

In  opening  a  new  set  of  books,  or  in  continuing  bnsiness  in  the  old,  the 
schedules  of  assets  and  debts  would  bo  entered  just  as  at  the  beginning'  of 
this  set  of  books.  (50)  ° 


\i 


GEORGE  N.  COMER'S 


LEDGER, 


I 


i  I 
H 


CONTAINING 


AN  ABSTRACT  OF  ALL  THE  TRANSACTIONS 
FROM  ALL  THE  OTHER  BOOKS. 


(61) 


I 


I 


BOOK-KEEPING. 


LEDGER. 


Dr. 


Merchandise. 


Cr.    (1)» 


fl 


I 


INDEX. 


Arnot,  Alfred 


A. 


B. 

Bank  of  Commerce 
Bills  Receivable 
Bills  Payable 
Bank  Stock,  Exchange 
Bank  of  the  Republic 

C. 

Cash 

Comer,  George  N. 

Consignment  from  Defree  &  Co. 

Consigt.  from  Quincy,  Dane  &  Co. 

Consigt.  from  Vaughn  Lloyd 

Commission 


17 

5 

6 

12 

22 

43 

4 
16 
30 


M. 

Merchandise 

Merchandise  Co.  K.  &  H.  P. 

Br. 

Naylor,  George  C. 

O. 

Olivera  &  Co. 

P. 

Proflt  &  Loss 
Parkinson,  R.  &  H. 


Davis,  Daniel 
Defree  &  Co. 


D. 


E. 


Estate  of  the  late  Edward  Evans 
Expense 

P. 

Farm  in  Watertown 

O. 

Gordon,  Samuel  T. 
Guaranty 

H. 

House  and  Land  at  Waltham 


33      Quincy,  Dane  &  Co. 
36 

R. 

Real  Estate  at  Brookline 
Rollins  Bro's  &  Co. 
Railroad  Stock,  Western 
Railroad  Stock,  Fitchbui^ 
Real  Estate  at  Chelsea 


40 

15 
31 


Interest 
Insurance,  Life 
Jones,  William 

Knowles,  Albert 


I,  J. 


23 
28 

26 

9 
41 

24 

32 
35 

13 


K. 


Lloyd,  Vaughn 
Loan  Account 


L. 


42 

49 


8. 

Ship  Sultana 

Sraithson,  William 

Suspense 

Shipment  to  Philadelphia 

Shipment  to  St.  Thomas 

Shipment  to  London 

Statement 

T. 

Thompson,  George  A. 
Trial  Balances 

V. 
Underwood,  Henry 

V,  W. 

Vanevar,  Robert 

X,  Y,  Z, 

Young,  Elias  P. 
Zahnt,  Felix 


63, 


1 
48 

19 

20 

21 

>      45 

14 

3 
10 
25 
27 
47 

2 
18 
89 
34 
37 
44 
06 

46 
64,65 

U 

8 


(52) 


18-      I 

Jan.     1  stock  on  hand 
Bought 
Do. 


Bought 

March    Bought 

«'  Do. 

«'     31   Proflt 


t  D.  Day  or  Day  Book, 
ic.  Cash  01  Gash  Book 


tDl 
Dl,2 

tC2 

C4 

D9,ll 

C6 
D13 


12500 
7303 


00 
60 


847  88 


18— 
■Jan. 


§20051 
4044 


M095  00 


48  Feb. 
12 


3591 
2700 
3231 


45 
00, 
13 


March 
«    31 


$1    34218  18 


Fold 
Do. 

Sold 
Do. 


Sold 
Do. 


Stock  on  hand 

§  This  method  will  be 
found  rery  convenient, 
saTing  long  additions 
every  month. 


Dl,4 

CI  ! 

D5,8 
C3 

Do.u 

C5 

D12 

74a3  90 
2183  95 

901)?  85 

10418  55 

2890 lie 

22982  56 
2112  50 
3423  12 
5700i00 

»: 

34218  18 

1 

Dr. 


Ship  Sultana. 


Cr.      (2) 


18- 

18— 

Jan.   1 

My^thjcoat 

Dl 

12500 

00 

Feb.   1 

Mar.31 

Pwftt                          . 

D13 

4000 

00 

Mar.  5 

"    31 

$ 

16500  00. 

Net  Freight 
Quincy, Dane  &Co.  ^ 
My  7  appraised  at 


C  1 
D9 
D12 


2500 

3000 

11000 


00 
00 
00 


$j    16500 


00 


Dr. 


Real  Estate  at  Brookline. 


Cr.     (3) 


18- 

18— 

Jan.   1 

Valued  at 

Dl 

10000  00 

Feb.  5 

Firemen's  Ins.  Co. 

D5 

2000 

00 

«    17 

T.  Mason,  Repairs 

C2 

125  00, 

Mar.31 

Appraised  at 

D12 

10500 

00 

«    24 

Firemen's  Ins.  Co. 

D3 

130 

00 

oo' 

t 

((   (( 

Loss 

D13 

385 

00 

10255 

Feb.  16 

J.  Wales,  Rebuilding 

C4 

500  00| 

/ 

Mar.    3  Tiremen's  Ins.  Co. 

D9 

130 

00 

/ 

"     24  J.  Wales,  in  fuU 

Dll 

2000 

00 

/ 

$ 

12885  00 

»1 

12885  00 

Dr. 


Cash. 


Cr.     (4) 


18— 
Jan.   1 
it 

On  hand 
Received 

R«o«iTed 
Received 

Dl 

CI 

C3 
C5 

350 
6798 

00 
95 

95 

78 

73 
32 

18— 
Jan. 
Feb. 

March 
"   31 

Paid 
Paid 

Paid 
BalaoM 

{ 
C2 
C4 

C6 
D12 

6691 
22504 

87 
17 

Feb. 

7148 
22385 

29196 
19750 

260 

04 
80 

March 

29534 
19672 

21 

» 

49207  05 

$1 

49207  05 

•  For  convenience  of  reference,  and  to  save  fpacc,  each  account  is  numbered  to  represent  a  page  on  the  Ledger.  In 
actual  business,  the  true  policy  and  economy  is  to  open  an  account  on  the  head  of  each  page,  and  not  to  open  a  second 
on  a  page  until  nearly  all  the  pages  on  the  Ledger  have  beep,  appropriated  ;  by  that  time  you  will  have  ascertained 
which  of  your  customers  are  likely  to  want  a  ioag  and  which  o'  them  a  short  spaoe.  It  \t  not  of  any  importance  wher* 
•n  aooouot  ii  opened  on  the  Ledger,  as  the  Index  regulates  that. 

5*  (53) 


If 


%\ 


III 


I 


11 


^i 


Dr. 


i 


1*- 

Jan.   1  Dtfod* 

"  6      Do 

"  22lH.  Low,  CoU. 

«  29Depodt 

"  30  X.  Eeed.  Coll. 


•eb 

. 

BaUno* 

u 

1 

DapoMt 

«( 

5 

Do. 

il 

17 

Do. 

(( 

28 

J.  Wood,  Con. 

March   BaUnoe 
"       3Jf.  Coo.CoU 
«*     19  Depo€it 
"     3r     Do. 


Dr. 


1*^ 
Jan.   1 


Feb. 


BUI  Book 
Ktceired 


March  R«a«iTMi 


Dr. 


760  00 


13260|00|'| 


BOOK-KEEPING. 
Bank  of  Commerce. 


18— 
8000  00 'Jan.  12 
SOOjOoj  ««  22 
20OO  00 
2000,00, 


^B^ (5) 


<«  or  I 


Dutin  Mid  freight 
Biot  Iiuunuice  Co. 
EicJimje  oa  Barbica 
31.B.  M.  Firelns.  Co. 
"     "     B.iM.c, 


108581 82' [Feb 

isoojooi   « 

l870jOoj 

2000  J0(> 

750  001 


1145 
111 
W9 

vjr, 

1085> 


50 

00 
68 
00 

82 


2  Jr.E.  M.LifelM.Co. 
6  Con*gt.  Defreoft  Co. 
y  QuiBcy,  Dane  ft  Co. 
15  Cooift.  V.  Uojd 

17  Shipt.  to8t.  Tfaomaa 
22 .  Shipt.  to  Londoa 
28  Cash  Account 
Balance 


$     13260  00 


2:32:00 

2ioo!oo 

50<t'oo 

65000 

6000J00 

3800  00 

4014  12 

652170 


052  70!  Mar.  3  Fir«nen'f  Im.  Co. 

"    28  J.  Wood* 

4000,  OOi:      "     31|Z.P.BrvHltiCo. 


16978182 


C6    II    3000|00p    ««    «' 


7902  71 


■<i\ 


D9 
DU 
Dll 
D12 


130  00 

75OJ00 

311645 

3906125 


7902 


70 


^ILL8  RECEIVARLE. 


Dl 


|18— 
2760^00  Jan. 


Cr.      (6) 


Dl,4,    3198!80  Feb. 

5958 '80, 
D6,8|'|  12074  J62'|March 

18ft33  42      ««    31 
Dio,m||    7278|90      «    «' 


25312  32 


DeliTcred 
Do. 


Delirered 

J.Todd 

Balance  to  new  acet. 


Alrert  Knowles. 


eren  upon 
the  op[)o- 

u    -  ^  -  - items  to 

rajrable  ihould  alwaji  be 


(54J 


'^- 


Dr. 


Dr. 


IS— 
Jan.    1 


Former  account 


Dr. 


18— 
Jan.    1 


Former  account 


Dr. 


LEDGER. 


Robert  Vanevar. 


Cr^ (B) 


1&- 

Jau.   1 

Former  acoount 

Dl 

687 

oo| 

18— 
Jan.  16 
Feb.  3 

Cash 
Cash 

CI 
CI 

387 
300 

00 
00 

»; 

687 

-; 

$ 

087 

00 

Samuel  T.  Gordon. 


Cr.     (9) 


Dl 


550 


18— 
00' !  Jan.  6  cash 


Mar. 


550 


00 


Cash 


CI 
C5 


250  00 
300!  00 


550100 


Dr. 

ROLLIXa 

Bro'S  &  Co. 

CR.     (10) 

18— 
Jau.   1 
«    31 

Former  acoount 
Merchandise 

Dl 
D4 

478 
3675 

00 
00 

[18— 
!  Jan.  26 
Feb. 17 

Cadi 

CI 
C3 

478 
3675 

00 
00 

$      4153  loo 

$      4153  00 

Henry  Underwood 


Bills  Payable. 


Cr.    (12) 


18- 

!118- 

,  1 

Jan. 

B«deemed 

D3 

2000 

00:  Jan.   1 

1 

Feb. 

Do. 

D5 

130 

00 

t( 

(( 

Do. 

C4 

2500 

00 
00 

4030 

Feb. 

March 

Redeemed 

C6 

4625 

55 

«'     31  Balance 

D12 

12625 

00 

1 

21880 

55 

Bill  Book 
Issued 

Issued 


Dr. 

William  Jones. 

18— 

18— 

Jan. 

2 

Merchandise 

Dl 

787 

50 

Jan.  1 

Former  a> 

(( 

26 

Cash 

C2 

1500 

00 

Mar. 

9 

Merchandise 

DIO  !      312 

II 

50; 

* 

$; 

'    2600  00 

1                                     1 

Dl 


Cr.    (13) 

2600  00 


2600 


00 


_„  ._,  ...   ■  papes,  setting  (  . 

fBond,  and  affixing  the  number  of  the  new  page  to  the  Index. 

(55) 


mm 


I  If 


II 


^1 


BOOK-KEEPING. 


DR. 

QuiNCY,  Dans  &  Co. 

Cr.  (U) 

18— 

Feb.    9|  Advance 
Mar.   5  .-^Ui  SWp  Saltan* 
"       5  Check  to  balance 

D6 
D9 

D9 

SOOOO'Jau.    1 
3000  00      "     5 
2549  17  Feb.  23 

Former  Aooount 
MerchuKUM 
Net  Sale* 

D2    ! 

D8    i 

1800  00 

215S  42 

,    mX)  75 

$ 

ur49  17 ! 

GWy  17 

Dr. 


IS— 

Jaa.  24 


Cub 


C2 


Daniel  Davis 

. 

Cr.  (16) 

j  18— 
950  00  Jan.    1 

Former  Aocoont 

Dl 

950 

00 

Dr.  - 


George  N.  Comer. 


Cr.  (16) 


18— 

Jan.  Sl'cMh 

I 
Feb.  2S  cish 

Mar.30  Cish 


"    31 


Net  Capital 


C2 
C4 
C6 
D12 


$ 


200  00; 

20000: 

200    00; 

58808  45| 

594<38  45' 

1!^        , 

Jan.     1   Net  Capital 
«     29  Ex'rs  C.  Newhall 
«     «   I   Do.  Do. 

Mar  31  Pn»ft» 


Dl 

38fjO0'0O 

D4   1 

:  10000  00 

CI    ! 

1    2000!00 

D13 

88G8j45 

$ 

'  594C8  45 

Dr. 


Alfred  Arnot,  Berbicc. 


Cr.  (17) 


18— 
Jan.  16 
"    27 


Aeot.  faTor  J.  Brown 
Draft  on  Toules&W;an 


D3 
D4    \ 

2500 
910 

I 

IS-     1 
Tiio.  10 

i 

ait9 

Mdee.  per  Christina 


Dr. 


William 


ON. 


Cr.  (18) 


18— 
Jan.  13 
Feb.   1 


n  Bales  Sbirtinc* 
Mercban<liM 


1 

D2 
D5 

507 
1115 

60 

77 

37, 

IH— 

Feb.  1 

$ 

1623 

Hia  Note  due  ith  May 


Dr. 


George  C.  Naylor. 


Cr.   (19, 


18— 
Jan.  IS 
Feb.   8 
Mar.  12 

Or.  on  OUrera  M  Co. 
Consjt.  Defree  4  Co. 
Farm  in  Watertown 

D3 
D5 
DIO 

500 
2200 
6550 

9250 

1  18- 
00,  Feb.  6 
00  Mar.  12 
oo: 

Cadi 

DepOfit  Bk.  Republic 

CI 
DIO 

500 
8750 

i 

or 

00 

1 

$ 

9:^50 

1 

Mtit.     In  posiin;,  errors  occasionanj  occur,  such  a"    '  r  creditinit  one  person  or  account  r 

enteriniC  the  sum  too  Lir^e  or  too  small ;  omittini;  enf  "t.  or  postinj;  them  twice,  ic. 

•■•  diaeoTerc'l.  ihej  miut  be  immediately  corrected,  nu,  >j  .i  .<  i.^uure  or  interlincitioQ,  is  that  « 

•  *an  iBipiciouj  appeaiaaee,  but  by  an  entrj,  eiplanatorj  of  the  miatake,  on  the  Day  Book,  and  from 

(56) 


poeted 


Db. 


LEDGER. 
Olivera  &  Co. 


18— 

1091  20' i  Jan.  18 

Mar.  5 


Or.  far.  0.  C.  Naylor 
Cash 


D3 

C5 


Cr.    (20) 


500  00 
594  20 


1094  20 


Dr. 


18—      I 

Jan.  23  H.  Underwood 

"     27,Pero3&Co.  Premium 

Feb.    2  Present.  Capt.  King 
"       "  Life  Ins.  Premium 

Mar. 31  Expense,  Int..  &o.,  4c. 
"     "    G.  N.  Comer,  Net  Profit 


D3 

C2 

C2 

D5 

D13 

D13 


Profit  &  Loss. 


Cr.    (21) 


225  00 


99 

00 


18 

150 

232|00 

2195 1 91 

886845 


11090:.35 


18 —      I  I 

Mar.l9jMdae.  Co.  B.  &  H.  p.  'd  10 

31  Merchandise,  &c.,  &0.    ;D  13 


3(H 
11386 


11690 


17 
18 


35 


Dr. 


18— 
Jan.  26 
Mar  ,31 


Estate  £.  Erana 
Do.         Do. 


Exchange  Bank  Stock. 


D4 
D12 

» 

7500 
300 

00 
00 

ooj 

18- 
Mar.  3 
"   31 

7800 

Dividend 
Estate  £.  Evans 


Dr. 


Estate  of  the  late  Edward  Evans. 


18— 
Mar  31 
((   (( 


Paid  to  Heirs 
House  at  Waltham 
Trust  Property 


C6 

D12 

D12 


«! 


1375 

45 

21000 


22420  00 


[!1^ 
OOjJan.  26 
00 
00  Mar.31 


Trust  Property 
Do.      Do. 
Inoome 


Cr.   (22) 


C5 
D12 


300 
7500 


7800 


00 
00 

00 


Cr.  (23) 


D4 
C  1 
!D12 


$ 


21000 

1000 

420 


00 
00 
00 


22420  00 


Dr. 


House  and  Land  at  Waltham. 


18- 

Jan.  26 

"   31 


Estate  E.  Erans 
B.  M.  Fire  Ins.  Co. 


18- 

D4 

9500 

00 

Feb.  2 

D4 

195 

00 

Mar.31 

$ 

i 

! 

((   <( 

9695  00 ; 

J.  Holmes,  Rent 
Estate  E.  Erans 
Do.         Do. 


(57) 


Cr.   (24) 


CI 
D  12 


150  00 

45*00 

9500,00 


9695  00 


■  n 

ill 


Dr. 


BOOK-KEEPma. 
Western  R.  R.  Stock. 


Cb.    (25) 


18— 

Jan.  26'  Estate  E.  Evtiia 
Mar.31    Do.         Do. 


D4 

D  12 


|118-      I 
300000;  Mar.   3^DlTidend 
12o!o0       "    31  but«£.£T»iii 


3120  001 


C5 
D12 


120  00 
3000  00 


3120 


00 


Dr. 

Farm  in 

Watertown. 

Cr.    (26) 

18— 
Jan.  29 
Feb.  13 
Mar.31 

Ez'n.  C.  Newball 
W.  Wood,  BepaiM 
Profit 

D4 

C4    1 
D13 

6000 
175 

512 

1 

00' 

00 

00, 

18— 
Feb.    9 
Mar.  12 

A.  BkHMi,  Rent 

Q.  0.  NaylOT               , 

C3 
D  10  1 

1 
137  00 

6550  00 

1 

«|    (5687 

1 

6687 

00 

Dr. 


FiTCHBURo  R.  R.  Stock. 


Cr.    (27) 


18- 
Jan.  29 
Mar.31 


Ez'n  C.  N««UU 
Do.         Do. 


18— 

D4 

4000 

00 

Mar. 

3 

D13 
f 

160 

00 

00 

1 

« 

31 

4160 

1 

DiTidead 
AppniMdM 


C5 
D12 


160  00 


4000 


4160 


00 

00 


Dr. 


Expense. 


Cr.    (28) 


18- 

18— 

Jan.   3 

Fitting  up  Store,  &0. 

C2 

550 

00; 

Feb. 19 

u   22 

Eliok  In*.  Co. 

D3 

111 

00 

"    23 

Feb. 

Clerk,  ko. 

C2,4 

225 

00 

Mar.31 

March 

B«nt,  *e. 

C6 

910 

25, 
25 

• 

1796 

Conagt.  Defreo  k  Co. 
Do.  Quisey.Duie  kCo. 
Profit  k  LoM  to  b*l. 


D7 

15 

D8 

11 

D13 

1769 

f 

1796 

50 
75 
00 


25 


Dr. 


Suspense. 


Cr.    (29) 


18— 

Mar.31  n.  e.  x.  L.  lu.  Co. 


D12 


8000 


00 


18- 
Feb.   2 


Lifelni.  Potky 


D5 


8000 


00 


Dr. 


Consignment  from  Defree  A  Co. 


Cr.   (30) 


18— 



18— 

Feb.  6 

Freight,  *e. 

D5 

300 

00 

Feb.  8 

a.  C.  NkjkR 

D5 

2200 

00 

u    u 

Drajageaad  Labor 

C2 

6 

25 

«    13 

Wm.  Hohnet 

D6 

800 

00 

*«    19 

Acoonnt  SiUm 

D7 
• 

&493 

75 
00 

«    19 

Felix  ZatiDt 

D7 

2800 

00 

5800 

J 

♦ 

5800 

00 

(58) 


7 


i 


^ 


Dr. 


LEDGER. 
Defree  &  Co.,  New  Orleans. 


Cr.   (31) 


18— 
Feb.   f) 
Mar.  15 


Draft  far.  F.  Tatlook 
Mj  Dft.  oc  F.  Zahnt 


$ 

D5 

DIO 

1800 
3243 

1 

00: 
25 

25 

18— 
Feb. 19 

6043 

Net  Salea 


$ 


D7 


5043 


$;    5043 


25 


25 


r 

)r. 

Inferest. 

18- 

18— 

■" 

Feb.  12 

M.  Lorering 

D6 

17 

71 

Mar.  16 

Felix  Zahnt'a  Note 

«    26 

W.  Holmea.  digot. 

D8 

64 

35 
06 

"    28 
«    3] 

J.  Wood's  Note 
P.  C  Jenks,  Lo&a 
Profit  &  LoM  to  bal. 

$ 

82 

Cr.    (32) 


DIO 

27 

27 

Dll 

7 

88 

C5 

6 

00 

D13 

$ 

41 

91 

82 

06 

Dr. 


Consignment  from  Quincv,  D.\ne  &  Co. 


Cr.    (33) 


18- 

Feb.    OjDrayage.  &o. 
**     23  Acoount  Sales 


C4 
D8 

$ 

1 

6 
2213 

1 
50 
00' 

Feb. 13 

"    22 

2220 

Wm.  Holmea 

Shipt.  to  London 


Dr. 


»    Shipment  to  Philadelphia. 


D6 

D8 


950  00 
1270  00 


2220 


00 


Cr.    (34) 


18— 
Feb.  14 

Mar.31 


Merchandise 
Freight,  &c. 
Profit 


18- 

D6 

2877 

12 

Mar.  1 

C4 

171 

00 

D13 

492 

88 
00 

3041 

Felix  Zabnt 


D9 

$ 

3041 

00 

3041 1 00 

Dr. 


Life  Insurance. 


Cr.  (35) 


18— 
Feb.  2 


N,  E.  M.  PoUcj 


D5 


8000 


00 


18— 
Mar.31 


Suspense 


D12 


8000 


00 


Dr. 


Consignment  from  Vaughn  Lloyd. 


Cr.  (36) 


18- 

Feb.  15 

"   26 

Mar.  2 


Duties,  &0. 
Labor,  &e. 
Aooount  Sales 


18— 

D7 

650 

00 

Feb.  28 

C4 

26 

30 

((    (( 

D9 

7007 

20 

50i 

1 

$ 

7083 

Louis  J.  Ripley 
Do.       Do. 


D8 
C3 


500000 
2683  50 


7683  50 


(69) 


m 


Dr. 


BOOK-KEEPING. 
Shipment  to  St.  Thomas. 


Cr.  (37) 


18— 
Feb.  17 


Mjhtit 


D7 


8187 


50 


18— 
Mar.ai 


BalADM  to  new  acot. 


$ 

D12 


8187 


50 


Dr. 

Elias  P 

Young. 

Cr.    (38) 

18— 
Feb.  17 

— Siupt.  to  St.  Thomai 

D7 

1 
8187  50 

|18- 
Feb. 17 
"  20 

On  M.  Sb.  to  St.  Tbom. 
Hii  Kot«  due  24th  April 

D7 
D7 

6875 
1312 

00 
50 

$ 

8187,50 

8187 

50 

Dr. 

Felix  Zahnt 

Philadelphia. 

Cr.   (39) 

18— 

Feb.  19  Consgt.  Defree  &  Co. 
Mar.    1  NetSkleimyCouct. 

D7 
D9 

$ 

2800 
3011 

00 

00 

00 

jl8- 
Mar.l5 
"    16 

De&ee  &  Co. 

Uij  Note  duo  13th  M>7 

DIO 
DIO 

3243 
2597 

25 
75 

5841 

$ 

5&il 

00 

Dr. 


Commission. 


Cr.    (40) 


18— 

118- 

1 

Alar  .31 

Fnfit  to  b&lance 

/ 

D13 

729 

67 

Feb. 19 

«   23 

Mar.  2 

1 

Coa«gt-  Dcfree  &  Co. 
Conegt.  Quine7,I>.&Co. 
CoQHt.  T.  Uojd 

D7 
D8 
D9 

290  00 

55  50 

384  17 

«, 

729, 67j 

$ 

729,67 

Dr. 


Guaranty. 


Cr.   (41) 


18— 
Mar.31 

Proat  to  bftUne* 

/ 

D13 

325 

50 
50 

18— 
Feb.  19 
"    23 
Mar.  2 

Consgt.  De&ee  &  Co. 
Consgt.  Qainc7,D:ftCo. 
Consgt.  V.  Uoji 

D7 
D8 
D9 

145 

65 

125 

00 
50 
00 

9 

325 

$ 

325 

50 

Dr. 


Vaughn  Lloyd,  Glasgfow. 


Cr.    (42) 


18— 
Feb.  21 
Mar.31 


Ac.  R.  Sluk,  £300  0  0 
Balance  to  new  acct. 


D7 
D12 

• 

3875 
2622 

55 

48, 

03 

18— 
Mar.  2 

6498 

N«t8«l«Conigt. 


D9 


6498 


&i98 


03 


03 


(60) 


Dr. 


LEDGER. 
Bank  of  the  Republic. 


Cr.    (43) 


18—       I 

Feb.  19  Deposit 

"     26 ;  Discount  W.  Holmes 


28 


Deposit 


March 
"   12 


Balance 

G.  C.  Naylor 


C4    I 

D8 

04    \ 


2000 
3024 
3000 


8024 


18— 
00'  Feb.  22 

40jj  "  28 
00  I 


40 


DIO 


$, 


5524  40; 
8750.  OO' 


14274,40 


Cash  Account 
Balance 


Mar.   5  Quincy,  Dane  &  Ce. 
"     1(5, Cash  Account 


"    24 
«    31 


J.  Wales 
Balance 


C3 


2500 
6524 


8024 


00 
40 


40 


DU   { 

2549 

C5 

3000 

Dil 

200<j 

DI2! 

1 
1 

6725 

$ 

14274 

17 
00 
00 
23 

40 


Dr. 


Shipment  to  London. 


Cr.    (44) 


l&- 
Feb.  22 


My  one  third 


D8 


4020  00 


18- 
Mar.31 


Balance  to  new  acct. 


D12 


4020 


00 


Dr.         R.  &  H.  Parkinson,  London  and  Manchester.         Cr.    (45) 


18— 
Feb.  22 
Mar.23 
"    31 


—  Shipt  to  London 
Dft.  on  Smyth  k  Hall 
Balance  to  new  acct. 


18— 

D8 

4020 

00 

Mar.  6 

Dll 

2904 

00! 

"    19 

D12 

646 

S3 
83 

i 

$ 

7570 

My  -  Mdse.  in  Co. 
Mdse.  Co.  R.  &  H.  F. 


D9 
DIO 


3033 
3937 


33 
50 


7570  83 


Dr. 

George  A. 

Thompson. 

Cr.  (46) 

18— 
Feb. 22 

—Shipt.  to  London 

D8 

$ 

4020 

0(1 
00 

!8— 
Feb.  22 
Mar.  12 

Cash 
Cash 

C3 
C5 

3000 
1020 

00 
00 

4020 

$ 

4020 

00 

Dr. 


Real  Estate  at  Chelsea. 


Cr.   (47) 


18— 
Feb.  22 
Mar.  12 
«   31 

J.  Fenno,  Deed 
Laying  out  into  8  Lots 
Profit  to  balance 

C4 
C6 
D13 

6000 

65 

1935 

00 
00 
00 

00 

1&- 

Mar.23 

"    31 

8000 

T.  Hall,  5  Lota 
3  Lots  valued  li 


Dll 
D12 


$ 


5000  00 
3000  00 


8000 


00 


(61) 


I J 


.        ill 


BOOK-KEEPING. 


<l 


Dr.                     Merchandise  Co.  R. 

&  H.  P. 

( 

Cb.    (48) 

18—      ] 

Mar.   2  Freigbt,  Ice. 
"       6  My  half,  £750  0  0 
"     19  R.  &  H.  P.  ft  Profit 

C6    , 

D9 

DIO 

1     ' 

375  00 

363.3  3:j 

424l!67 

118- 
Mar.l9 

XetSalM 

C5 

8250 

00 

$1 

8250  00 

•1 

8250  00 

Dr. 


Lo.VN  Account. 


Cr.    (49) 


18— 
Mar.  19 


p.  C.  J«ak«,  Unt 


C6 


2500 


j 
00 


18— 
Mar.31 


p.  C.  JenkSi  retuned 


C5 


2500  00 


Note.  Some  merchants  adopt  the  plan  of  having  a  double  column  on  their 
Ledger,  for  the  purpose  of  keeping  all  the  bills  receivable  in  the  inner  column 
until  paid,  so  that  they  shall  be  separate  from  the  cash  or  other  credits,  and 
thereby  show  at  a  glance  how  the  debtor's  account  stands  ;  that  is,  the  total 
debit,  the  total  credit,  and  liow  much  of  it  is  in  notes  not  yet  matured.  For 
example :  A  merchant  sold  to  A.  13.,  in  the  month  of  January,  merchandise 
to  the  amount  of  $5000  on  six  months'  credit.  In  the  same  month  A.  B.  paid  on 
account  $1000,  and  on  the  Ist  February  gave  his  averaged  note  for  the  balance. 
In  February  there  was  charged  to  A.  B.  $5000,  and  he  paid  in  during  the  month 
$2000,  and  on  the  1st  March  gave  his  averaged  note  for  the  balance.  The  same 
thing  goes  on  for  the  next  four  months.  On  the  seventh  month  A.  B.  fails ; 
the  merchant  is  then  astonished  to  find  that  there  are  notes  of  A.  B.'s,  not  yet 
matured,  to  the  amount  of  $19,000.  It  was  the  merchant's  full  int^tion  not  to 
give  A.  B.  a  larger  credit  at  any  one  time  than  $12,000;  but  in  cgiisequence  of 
the  prompt  cash  payments,  and  the  account  being  balanced  up  each  month,  it 
was  overlooked.  Had  he  adopted  the  plan  of  keeping  the  notes  in  the  inner 
column,  he  might  have  saved  $7000. 

To  ascertain  the  Amount  of  Stock  on  hand. 

Ther«  have  been  a  great  many  plans  (each  set  forth  by  its  projector  as 
infallll/1'2)  whereby  a  merchant  might  tell  the  amount  of  merchandise  on  hand 
without  having  to  go  through  the  process  of  "  taking  stock ; "  but  I  have 
never  seen  any  which  for  a  general  business  was  in  the  slightest  degree  reli- 
able. One  plan  is  to  give  the  Merchandise  account  credit  for  the  goods  sold  at 
cost  only,  and  crediting  the  Profit  :md  Loss  account  for  the  estimated  profit. 
This  might  answer  where  the  goods  were  in  unbroken  packages,  but  not  in  a 
mixed  business.  Some  of  the  goods  may  have  deteriorated  in  value ;  piece 
goods  when  once  cut,  ullage  casks  and  cases,  are  never  worth  as  much  as  in  the 
original  package.  Then,  again,  there  is  no  protection  against  peculation.  There 
may  be  a  general  idea  that  there  ought  to  be  about  such  an  amount  of  mer- 
chandise on  hand  ;  but  when  it  falls  materially  short  of  that  expectation,  there 
is  no  certainty  of  discovering  the  leak,  and  frequently  innocent  parties  fall 
under  unjust  puspicion.  Accurate  book  keeping,  careful  stock-taking  at  its 
actual  valur,  Regardless  of  cost,  (that  is,  such  a  price  as  the  article  can  be 
purchased  for  hi  the  market,)  and  thorough  watohfulness  on  the  part  of  the 
merchant,  «re  better  than  all  the  fantastical  "  infallibilities  "  ever  devised. 

(62) 


Drs. 


LEDGER. 

TRIAL  BALANCE. 

January,  18 — 


Crs. 


Differences. 


10983  63 
12500  00 


10255 

457 

108^8 

3198 

475 

300 

300 

3675 


00 
08 
82 
80 
00 
00 
00 
00 


Amounts.  ^^^^^ 


507 
600 

243 

7500 

9695 
3000 
6000 
4000 
661 


60 
00 

99 
00 

00 
00 
00 
00 
00 


%   85110  92 


20651 

12500 

10255 

7148 

13260 

5958 

975 

687 

550 

4153 

450 

2000 

2287 

950 
200 
3449 
507 
500 

243 

7500 

9695 
3000 
6000 
4000 
661 


48 
00 
00 
95 
00| 
80 
00 
00 
00 
00 
00 
00 
50 


117584 


00 

ool 

68! 
60 
00 

99 
00 

00 
00 
00 
00 

00 

00 


1 

2 
3 

4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 


Names. 


Amounts.   Differ'ces. 


Merchandise 
Ship  Sultana 
Real  Estate  at  BrookUne 
Cash 

Bank  of  Commerce 
Bills  Receivable 
Albert  Knowles 
Robert  Vanevar 
Samuel  T.  Gordon 
Rollins  Bro's  &  Co. 
Henry  Underwood 
Bills  Payable 
William  Jones 
Quincy,  Dane  &  Co. 
Daniel  Davis 
George  N.  Comer 
Alfred  Amot 
William  Smithson 
George  C.  Nay  lor 
Olivera  &  Co. 
Profit  &  Loss 

Exchange  Bank  Stock 

Estate  of  the  late  Edw'd  Evans 

House  and  Land  at  Waltham 

Western  R.  R.  Stock 

Farm  in  Watertown 

Ktchburg  R.  R.  Stock 

Expense 


9667  85 


6691 
2401 
2760 

500 

387 

250100 

478100 

450 
9940 
2600 
3958 

950 

60600 

34491 


87 
18 
00 
00 
00 


00 
OOj 
00 
42 
00 
00 
68 


500 


00 


22000  00  !  22000 


7940 

312 

3958 

50400 


00 
50 
42 

00 


500 


00 


00 


$  117584 


.Proof.. 


Amt.  of  D.  B.  Add'ns  $101093.18 
"  "  Cash  received  6798.95 
4t  ((  «t  paid     6091.87 


00 


$117584.00 


85110  92 


■  'i  I- 


(63) 


Drs. 


BOOK-KEEPING. 

TRIAL  BALANCE. 

February  y  18— 


Crs. 


I 


Differences. 

f      171304 

-   10000  00 

875.5' 00 

a3tt  09 

-652  70 

-11434  67 

475  00 

300  00 


\\ 


V.i 


2200  00 

694  20 

—  625  99 

7500  00 

""  9545  00 
3000  00 

-  6038  00 
4000  00 

—  858  75 


82  06 

I     ' 

2548  12 

8000  00 

8187  50 j 

2800  00 


3875  55 
5524  40  I 
4020  m\ 
4020  OOi 
1020  00  1 
6000  00 


Amounts.  Lfdijer 
I    Page, 


4044  12 

500  00 

22385  78 

6120  001 

12074  621 


2630 

500 

200 

1115 

2200 

1094 

382 


175 


225 

5800 
1800 

82 
2220 
254S 

8000 
676 

8187' 
81871 
2800 


00 
00 

oo 

■r-t 
// 

00 
20 
00 


00 
00 


3875 


00 

00| 
OOj 

ooi 

ool 

30! 
50l 
5(> 

00 ; 


55' 


4'/^ 

4020  m 
tiOOO  00 


$  114108  67  j 123907  92 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
12 
13 
14 
16 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 


Names. 


I' 


Merchandise  i 

Ship  Sultana 

Real  Estate  at  Brookline 

jCash 

I  Bank  of  Commerce 

j  Bills  Receivable 

(Albert  Knowles 

;  Robert  Vauevar 

I  Samuel  T.  Gordon 

Kollins  Bros.  &  Co. 

Bills  Payable 

I  William  Jones 

;  Quincy,  Dane  &  Co. 

Georg-e  N.  Comer 

William  Smith  son 

George  C.  Naylor 

Olivera  &  Co. 

Profit  &  Loss 

Exchange  Bank  Stock 

Estate  of  the  late  Edw'd  Evans 

House  and  Land  at  Waltham    I 

Western  R.  R.  Stock 
1  F'arm  in  Watertown  I 

Fitchburg  R.  R.  Stock 

Expense 

Suspense 

Con8ij,Tim't  from  Defree  &,  Co. 

Delree  &  Co. 
j Interest 

I  Cons't  from  Quincy  .Dane  &  Co. 
I  Shipment  to  Philadelphia 
Life  Insurance 

Consigns  from  Vaughn  Lloyd 
Shipment  to  St.  Thomas 
;EIias  P.  Young 
Felix  Zahnt 
[Commission 
'Guaranty 
Vaugljn  Lloyd 
Bank  of  the  Republic 
Shipmentto  London 
R.  &  H.  Ifcf^insoh 
George  A^Vhompson 
Real  E8tate\t  Chelsea 


Amounts.   Differ'cea 


ia314 

2500 

20U0  !oo! 
22504117 
16.326]  12! 

3838  751 

30000! 

3675  00 
lliHO  55 

2090  75 

1623  37' 
500  00 


17250,55 

31250 

554U!  17 

50200  00 


22000 


5043 
2220  00 

7683  50 

i 
8187  50j 

345  50 
200,50, 

2500  00' 


3000 


Drs. 


LEDGER. 

TRIAL  BALANCE. 

March,  18 — 


Crs. 


Differences.    Amounts.  Ledger 


2468  87 
70(X)  00 

10S8;>  00 

2(i0  21 

3'.)0<)  25 

18403  57 


li 


Page. 


.Proof.. 


Amt.  of  D.  B.  Add'ns  $70017.97 
"  "  Cash  received  22385.78 
"      "      "     paid  22504.17 


$123907.92 


8000  00 
3243  25 


7007  20 


345  50 
200  50 


32182 

7200  00 , 

!      I 

9545  00 
2880  00 
1  • 
3840  00 
1769  00 


4191, 
8000  00| 
8187  50 


6725  23 

4020  00 


629] 

2130 

19672 

7250 

727^ 


402.5 
312 

5549 
2{KJ 

6550 


1375 


1065 


00 


$   96579  36 


910 
3243 


7007 
3041 


8750 


45 

00' 

;{2 

00 

90 


55 

50 
17 
00 
00 


00 


2904 

65 

8250 
2500 


25 
25 


20 


00 


00 
00 
00 


97905  59 


1 

3 

4. 

5. 

6 

7 

9 

12 

13 

14 

16 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

31 

32 

34 

35 

36 

37 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

49 


Names. 


Jlerehandise  | 

Ship  Sultana 

Heal  Estate  at  Broofkliuc 

Cash 

ISank  of  Commerce 

Bills  Keccivable 

Albert  Kuowles 

Sixmuel  T.  Gordon 

liillR  Payable 

Will  iam'.I  ones 

(iuiucy,  Dane  &  Co. 

George  N.  (Jomer 

George  C.  Naylor 

Olivera  «&  Co. 

Profit  &  Loss 

Exchange  Bank  Stock 

Estate  of  the  late  Edw'd  Evansl 

House  and  Laud  at  Wsiltham    i 

AV'estern  R.  R.  Stock  ! 

I"'arm  in  Watertown 

lltchburg  R.  R.  Stock 

Expf^nse 

Suspense 

I  )efree  &  Co. 

Interest 

Shipment  to  Philadelphia 

liife  Insunince 

Consign't  from  Vaughn  Lloyd 

Shiprtient  to  St.  Thomas 

Flix  Zuhnt 

Commission 

Guaranty 

Vaugliu  "Lloyd 

Bank  of  the  Republic 

Shipment  to  London 

R.  &  H.  Parkinson 

Georj^e  A'.  Thompson 

Real  Estate  at  Chelsea 

Merchandise  Co.  R.  »&  H.  P. 

Loan  Aocount 


Amounts 


Differ'ces. 


5535  62 
3000  00 


39<.«i  45 
250;(X> 
475  (HI 
300  00 


8750  00 
504120 
304|l7i 
30O1OO 


120  00 

6550 '00 

160  00 


40  15 
3041  00 


5841  00 
3&4  17! 
125  ;00 

(H98|03' 


in 


12625  00 
50000  00 


20625  00 


7549  17j 

I 
7570 'a3 

1020,  ooi 

5000  00 

8250  j  00 

2500  00 


512 

8000 

492 


In 


00 
00 
88 


729  67 

325  50 

2622  48 


646 


.Proof.. 


Amt.  of  D.  B.  Add'ns  $58482.47 
"  "  Cash  received  19672.32 
"      "      "     paid  19750.80 


83 


$97905.59 


i 


(64) 


6* 


(65) 


BOOK-KEEPING. 


STATEMENT. 

Upon  examining  the  foregoing  set  of  books,  I  And  that 

The  amount  of  assets  at  closing  is <k2  762  "0 

The  amount  of  debts  at  closii^  is 23  S94  31 

Net  Capital 58,868.45 

To  which   should  be  added,  pro  forma,  the   amount  withdrawn 

by  3Ir.  Comer  for  his  personal  expenses 600.00 

Nominal  Capital     5U,4GS.45 

The  amount  of  assets  at  commencement  was $-19  230.00 

The  amount  of  debts  at  commencement  was 10  050.00 

Nominal  Capital 38,000.00 

From  which  is  to  be  deducted  the  loss  on  H.  Underwood's 

account,  one  of  the  assets,  but  good  for  only  one  half         225.00 

Net  Capital 38,375.00 

To  which  is  to  be  added 

The  amount  of  the  legacy  received  from  the  estate  of  the 

late  Charles  Newhall 12,000.00 

Also, 

The  amount  of  net  profit,  after  deducting  the  expenses 
and  losses  incurred  during  the  time  engaged  in  this 
business, 9093.45  59,468.45 


BILLS  RECEIVABLE  BOOK. 


There  are  several  items,  such  as  commission  for  care  of  trust  property, 
interest  on  capital  and  withdrawals,  interest  on  bills  receivable  and  payable 
not  due,  and  other  things,  which,  in  rendering  a  strictly  accurate  statement, 
ought  to  have  been  considered,  but  which  have  been  omitted  here  to  simplify 
the  matter  and  save  confusion  in  the  minds  of  beginners. 


Boston,  1st  April,  18— 


SIDNEY  SLOAN, 

Accountant. 


(66) 


i  i 

J^    := 

d 

oi 

1 

n 

«       §                            g       6 

0 

M 

M 
M 

•< 

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(67) 


f 


m 


BILLS   PAYABLE  BOOK. 


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(68) 


POSTING. 

METHOD  OF  POSTING  THE  BILL  BOOKS,  WHEN  THEY  ARE 
MADE  THE  BOOKS  OF  ORIGINAL  ENTRY. 
First  Posting. 

Bills  Receivable  are  posted  to  the  credit  of  the  persons  from  whom,  or  the 
accounts  on  which,  they  have  been  received. 

Bills  Payable  are  posted  to  the  debit  of  the  persons  to  whom,  or  the  accounts 
on  which,  they  have  been  issued. 

Second  Posting. 

Bills  Receivable  Is  debited  at  the  end  of  the  month  for  the  total  amount  of 
bills  received  during  the  month. 

Bills  Payable  is  crediti-d  at  the  end  of  the  month  for  the  total  amount  of 
bills  issued  during  the  month. 

There  are  several  methods  of  keeping  Bill  Books.  It  is  quite  common  to 
havethem  in  one  book,  one  half  of  the  book  commencing  with  Bills  Receivable, 
the  other  half,  the  other  side  up,  commencing  with  Bills  Payable ;  but  I  thmk 
it  much  preferable  to  keep  them  in  separate  books,  and  I  would  have  the  bind- 
ings, or  the  labels  on  the  backs  at  any  rate,  a  quite  distinct  color  from  each 
other.  When  the  bill  transactions  are  numerous,  I  am  satisfied  that  the  best 
plan  is  to  keep  the  Bill  Books  the  same  as  a  Day  Book,  entering  them  as 
received  and  delivered,  and  then  transferring  them  (as  a  memorandum  only  for 
convenience  of  reference,  to  show,  at  a  glance,  the  bills  falling  due  in  any 
month)  to  books  prepared  like  the  Index  to  a  Ledger,  with  several  pages  to 
the  names  of  each  of  the  months  in  the  year,  in  the  place  of  the  letters  of  the 
alphabet,  thus  :  — 

Bills  Receivable. 


January. 

Due. 

Name. 

Amount. 

Remarks. 

January. 

February. 

Due. 

Name. 

j  Amount. 

Remarks. 

February. 

16th. 
27th. 

Hiram  Low 
Nolan  Reed 

2000  00 
760  00 

Bk.  Commerce,  coll. 
Bk.  Commerce,  coll. 

March. 

Due. 

Name. 

1  Amount. 

Remarks. 

March. 

9th. 
28th. 

N.  Goes 
Joseph  Wood 

250  00 
750  00 

;               1 

Bk.  Commerce,  coll. 
Bk.  Commerce,  coll. 

And  so  on,  Bills  Payable  being  treated  in  the  same  way. 

(69) 


ii  ; 
If 


II 


i'  I 


BOOK-KEEPING. 

Annexed  are  examples  of  what  T  conr>eive  to  be  the  most  approved  forms 
of  Bills  Keceivable  and  Bills  Payable  Books,  Sales  and  Purchase  Books,  Day 
and  Check  Books,  each  arranged  as  though  the  first  month's  business  of  the 
foregoing  set  of  books  had  b<'en  kept  in  those  separate  books,  instead  of  a  Day 
Book  only, — the  Cash  Book  in  both  cases  being  precisely  the  same,— from  which 
it  will  be  seen  that  the  original  entries  for  a  very  extensive  business  can  be 
made  on  their  appropriate  books  by  different  parties,  and  at  once,  without  any 
rewriting,  be  posted  to  their  appropriate  accounts  on  the  Ledger,  the  lootings 
of  each  book  at  the  end  of  the  month  being  carried  to  the  debit  or  credit  of 
the  account  on  the  Ledger  bearing  its  name,  making  the  one  debit  or  credit  as 
the  case  m;iy  bo,  equal  in  amount  to  all  the  separate  debits  or  credits  from  that 
book  for  the  mouth. 

I  have  placed  these  forms  of  books  all  together  in  this  place,  instead  of 
putting  them  under  their  separate  heads  iu  the  Appendix,  as  I  at  first 
intended. 

(70) 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 

12 
13 
14 
15 
16 


19 


20 


11 


21 


23 

24 
22 
25 


16 
26 
27 


DAY  BOOK. 


Boston,  1st  January,  18 — 


Drs. 


Crs. 


Schedule  of  Assets. 
Merchandise,  per  Stock  Book 
Ship  Sultana,  my  iijths.    Cost 
Real  Estate  at  Brookline,  valued  at 
Cash,  per  Cash  Book 
Bank  of  Commerce,  on  deposit 
Bills  Receivable,  per  Bill  Book 
Albert  Knowles 
Robert  Vanevar 
Samuel  T.  Gordon 
Rollins  Bros.  &  Co. 
Henry  Underwood 

Schedule  of  Debts. 
Bills  Payable,  per  Bill  Book 
William  Jones 
Quincy,  Dane  &  Co. 
Daniel  Davis 

George  N.  Comer,  Net  Capital 
18th 


owes 


49,250.00 
due 


49,250.00 


George  C.  Naylor,  Dr. 

For  my  Order  on  Olivera  &  Co.,  for  100  Tons 
Pictou  Coal  @  5.00 

23d 


Henry  Underwood,  Cr. 

For  Abatement  to  balance  his  account,  he 

having  made  a  composition  of  50  per 

cent. 
(See  Bills  Receivable  Book.) 

2fith. 


Estate  of  the  late  Edward  Evans, 
For  the  following  property  in  trust :  — 
House  and  Land  at  Waltham 
75  Shares  Exchange  Bank  Stock 
30     "       Western  R.  R.  Stock 

29th 


Cr. 


George  N.  Comer,  (Legacy  C.  Newhall,)      Cr. 

For  Farm  in  Watertown         valued  at 

40  Shares  Fitchburg  R.  R.  Stock   "   " 


(71) 


12500 

12500 

10000 

350 

8000 

2760 

975 

687 

550 

478 

450 


00 

oo; 

00 

oo' 

00, 

oo' 

oo| 

00 

00 
00 


500 


225 


9500 
7500 
3000 


6000 
4000 


r9975 


00 


00 


00 
00 
00 


5300 


2600 

1800 

950:00 

38G00  00 


00 


00 
00 


500 


225 


20000 


oo; 

00:  j  10000  i  00 


00 


00 


00 


00,1  79975 


00 


III 


Ill 


:|  I 


I 


If 
"I 


»      ■* 

•a 


11 


BILLS  RECEIVABLE. 

Boston,  Ist  Jamiary,  18— 


Drs. 


Crs 


On  Hand. 
Hiram  Low's  Note,  date  13th  Aug.,  6  moB.,  due 
16th  Feb.  ^ 

Nolan  Reed's  Note,  date  24th  Oct.,  4  mos.,  due 
27th  Feb. 


$ 


Sd  Jantiary,  18 — 

Case,  Wilson  &  Co.,  .    cr. 

For  their  Note,  this  date,  6  mos.,  due  6th 

July,  in  full  for  Mdse. 

— 22d 


Bank  of  Commerce,                                     dr. 
For  H.  Low's  Note,  due  16th  Feb.,  deposited 
for  collection 
— 23d 


Henry  Underwood,  cr. 

For  B.  Dodd's  Note,  this  date,  8  mos.,  due 

26th  Sept.,  being  his  composition  of  50 

per  cent. 
25th. - 


Joseph  Wood,                                               ck. 
For  his  Note  this  date,  2  mos.,  due  28th 
March,  exchanged   for   his    accommo- 
dation 
- 26th 


23     Estate  of  the  late  Edward  Evans,       Cr. 
For  John  Todd's  Note  of  20th  Oct.,  8  mos., 
due  23d  June 
. 30th. 


Bank  of  Commerce,  dr. 

For  Nolan  Reed's  Note,  due  27th  Feb.,  de- 
posited for  collection 


2000 


760 


2760 


00 

00 
00 


1223 


80 


225  00 


750 


00 


1000  00 


3198 


80 


2000  00 


760  00 


2760,00 


Each  item  (w  loon  u  ecoTenieot  after  the  entry  i«  made)  U  ported  (s  the  debit  or  credit  of  the  proper  hcoount,  and 
Bill»  Receivable  13  debited,  at  the  end  of  (be  month,  for  the  total  amount  reoeived.  and  credited  br  the  total  aiDouut 
delirered  during  the  month. 

(72) 


I 


3 


12 


17 


I 


^  i 

s  " 

a  - 

*  i 

J  8 


1^ 


BILLS  PAYABLE. 


Boston,  \8t  January,  18— 


Drs. 


Crs. 


Former  Issue. 

Robert  EUiott,  my  Note,  15th  Sept.,  6  mos.,  due 

18th  March  ^ 

S.  C.  Watts,  my  Note,  5th  Dec,  8  mos.,  due  8th 


Aug. 


t 


Sth  Jamiary,  18— 

SOAMES,  SMYTHE  &  Co.,  DR. 

For  my  Note  of  this  date,  6  mos.,  due  11th 
July,  for  Merchandise 
__  16th 


Alfred  Arnot,  Berbice,  Dr. 
For  my  Acceptance  his  Draft,  at  20  days' 
sight,  favor  of  James  Brown 
20th. 


Robert  Elliott, 

For  my  Note  of  15th  Sept.,  given  up 

— Dr. 


Or. 


For  my  Note,  this  date,  3  mos.,  due  23d 
April,  in  part  to  take  up  the   above, 
•      —Mdse.  to  balance.    (See  Sales.) 
24th. 


►-85 
.S  o  "  o 

•2  "  -  g 

«  C  9  e 
•  "C—  a 


Real  Estate  at  Brookline,  dr. 
For  my  Note  this  date,  on  demand,  for 
Premium  of  Insurance 
25th.  


Joseph  Wood,  -q^ 

For  my  Note,  this  date,  2  mos.,  due  28th 
March,  exchanged  for  his  accommo- 
dation 


12 


2000 


OOl 


$      2000  00 


2000  00 
3300  00 


5.300  00 


550  00 


2500 


710 


00 


130 


00 


00 


750  00 


4040  00 


Bif^Pa^zizrtj^r  «:iitL;'eVd"7t;'  """ti  i  '^r  *"  "^^  "^^'^  "^  """*•*  ^^  «>•  ^-^  — ».  -« 

ueuivea  ana  oreojted  at  Um  end  of  the  month  for  the  total  amount  redeemed  or  iMued. 

5"  C73J 


rl 


1 1 

mvx 


fil 


'  I  ¥1 


SALES  BOOK. 


hi 


:  'I  I 


IS 


I. 

I' 


18 


jBo9<on,  2d  ./anwary,  18 — 


DBS.         Crs. 


William  Jones, 

50  Rms.  White  Laid  Letter 

"  "      Wove    «* 

50    "       Blue    Laid      " 
50    "  "      Wove    " 

400  Gross  Comer's  Steel  Pens, 


e  12.50 
2.629 
2J25 
2.372 


JOO  100  100  100 

Nos.  1,  2,  3,  4,  @  .75 


3d. 


Case,  Wilson  &  Co., 
Merchandise 

Of  eouTM,  in  actual  bniineM,  eaeh  artiel*,  irith  iti  qnaatity,  prie«,  and 
amount,  would  bo  enumerated  ;  the;  are  omitted  here  merely  for  conran- 
ienoe.  The  amount  ii  kept  In  the  inner  column  for  the  reaeon  that  it  will  b« 
posted  from  the  Bill*  ReoeiTahle  Book. 

13th 


William  Smithson, 
Merchandise 


.20th.. 


Robert  Elliott, 
Merchandise 


31  St. 


10  ^  Rollins  Bros.  &  Co., 
Merchandise 


125 
131 
112 
118 

300 


1223 


00 
25 
50 
75 

00 


80 


787 


607 


50 


60 


1290  00 


3675 


00 


6260  10 


Saeh  item  (a«  ioon  a*  eoarealeat  after  the  entry  is  ms4e)  is  potted  to  the  debit  of  the  proper  aoeouat,  and  Mer- 
ehandise  is  credited  at  the  end  of  the  month  for  the  total  amount. 

All  sales  which  are  settled  for,  at  or  about  the  time  of  the  sale,  are  kept  in  the  inner  column,  to  fare  openia( 
•ceounu  in  the  Ledger  with  the  purehasert. 

Special  accounts,  such  as  goods  told  oa  eommission,  ke.,  are  kept  hi  the  inner  column,  so  as  to  be  separate  tnm 
ftmx  evn  lasubaadin.    Wten  nA  trwurntimii  m*  numerous,  It  majr  b«  d«iix»ble  to  k««p  »  C«ouiuuioB  8*1m  B«o^ 

(74) 


INVOICE  OR  PURCHASE  BOOK. 


14 


1^ 

•s 

3 


17 


Boston,  5th  January,  18 — 


Drs. 


Crs. 


QuiNCY,  Dane  &  Co., 

16  Hhds.  N.  O.  Sugar 


cwt.  qrs.  lbs. 
Gross  245   0    16 


Tare 
Net 


17    1     12 
227   3      4 


200  Boxes  Malaga  Raisins 


@  $7.50 
2.25 


8th. 


SOAMES,  SMYTIIE  &  CO., 

Merchandise 

Each  article,  with  its  quantity,  price  and  amount,  would.  In  actual  busi- 
ness, be  enumerated  ;  the j  are  omitted  here  for  conTenience,  This  amotmt 
is  kept  in  the  inner  column,  as  it  will  be  posted  &om  the  Bills  Payable  and 
Cash  Books. 

10th 


Alfred  Arnot,  Berbice, 
Merchandise 


1708 
450 


853  21 


2158 


3449 


42 


5C08 


68 


10 


Each  item  (as  soon  as  convenient  after  the  entry  is  made)  is  posted  to  the  credit  of  the  proper  account,  and  Uei* 
•bandise  is  debited  with  the  total  amount  at  t'uo  end  of  the  month, 
Ib  taking  off  the  Proof  of  the  Trial  Balance  from  these  different  books,  it  will  be  found  that  the 

Day  Book  addition  is |  79,975.00 

Bills  BeceiTable,  received 3,198.80 

"  "  delivered 2,760.00 

Bais  Payable,  issued 4,(H0.00 

"  "      redeemed 2,000.00 

Sales  Book,  addition 6,260.10 

Purchase  Book,  addition 6,608.10 

Check  Book,  withdrawn 2,401.18 

Cash  received 6,798.95 

Cash  paid 6,691.87 

120,331.00 
which  is  too  much,  for  the  reason  that  when  we  received  the  Note  from  Elliott,  we 

debited  Bills  Payable  $2000,  and  credited  Mdse.  $1290,  and  Bills  Payable  $710. 

Sotbatwehaveonly  debit  and  credit  for  $2000,  and  not  $2000  twice  over      .        $2000 

n«  same  with  Joseph  Weed's  Note 750  2,750.00 

PmooF  I117.5M.00 

(75) 


i 


ii'«I 


CHECK  BOOK. 


:l! 


4> 


Thia  oounUrpsrt  is  reMincd,  and  it  th«  oii(t 
nat  entrj  to  be  posted  to  t]>«  Uiftt. 


No.l.  l2thJanA8— 

Duties   on    Sugar 
from  Berbice 


No. 2.  \2thJan.\^f— 

Capt.  Gale, 
Freight,    tfc,    on 
Sugar /r'm  Berbice 


No.  3.  22rl  Jan.  18— 
Eliot  Fire  Ins.  Co. 

Insurance  o/Mdse 

in  store 


L.F. 


28 


No.  4.  27tkJan.\f^— 
Peros  (f  Co's  Exc. 
on  Y'oule  (f  Wyans, 
remitted     to     A. 
Arnot,  Berbice 
Premium  in  Cash. 


No.  5.  31«f  Jrm.  18— 
Bos.  M.Fire  Ins. Co. 

Insur^ce  of  house 

at  Waltham 


17 


82800 


317 


50 


11100 


24 


Ata  put  i«  cut  oot  to  b«  pratMitcd  M  the  bank. 

$828.00  Boston,  \2th  Jaminry,  18 — 

Cashier  of  the  Bank  of  Commerce, 

Pay  to  Duties,  or  bearer, 

Eight  hundred  and  twenty-eight  100  Dollars. 

No.  1.  George  X.  Comer. 


$317.50  •     Boston,  12th  January,  18— 

Cashier  of  the  Bank  of  Commerce, 
Pay  to  dipt.  Gale,  or  bearer, 

Three  hundred  and  seventeen       ythF  I>oliars. 
No.  2.  George  N.  Comer. 


$111.00  Boston,  22d  January,  18— 

Cashier  of  the  Bank  of  Commerce, 

Pay  to  Eliot  Fire  Ins.  Co.,  or  bearer, 

One  hundred  and  eleven  lOO  Dollars. 

No.  3.  George  X.  Comer. 


94968 


19500 


Withdr'wn  this  mo. 


12401 


$919.68  Boston,  27th  .lanuary,  18— 

Cashier  of  the  Bank  of  Commerce, 
Pay  to  Peros  d-  Co.,  or  bearer, 

fi  ft 

Nine  hundred  and  forty-nine        yg^y  Dollars. 
No.  4.  George  X.  Comer. 


$195.00  Boston,  31s<  January,  18— 

Casliier  of  the  Bank  of  Commerce, 

Pay  to  Boston  M.  Fire  Ins.  Co.,    or  bearer, 
One  hundred  and  ninety-fire         100  Dollars. 

No.  5.  George  X.  Comer. 


18    The  woida  ia  ItoliM  are  Ihoee  umuUj  in  writing,  the  others  are  printed. 


Each  item  (a*  soon  as  eonrenient  after  the  check  Is  delivered)  is  posted  to  the  debit  of  the  proper  aeoonnt,  and  the 
Bank  U  credited  with  the  total  amoont  at  the  end  of  the  month.  It  is  a  good  plan  to  keep  a  memorandum  of  depositt 
Md  withdrawals  on  the  back  of  the  part  remainiug  after  Che  check  ii  cut  out,  to  show,  at  a  glance,  the  balance  in  bank, 
which,  after  the  llrst  few  checks  hare  been  d  rawn,  will  be  some  pages  baek.  and  not  exposed  to  an  j  one  overlooking  yo« 
whmdMwiagaebMk;  UkMis,70ucankiMwlba  baUttMjouiaeU  wiUKMtUttiiic  g(b«T  pwpU  know  it.    £sMnpU: 


18- 

Jaa.  1.   Deposit 
••     S.       do. 


«  12.  SntiM 

••  12.  Freight 

M  23.  Dep.  eoll. 

«  n.  BMIiuuCo. 

••  27.  Pom  *  Co. 

"  S9.  Dep. 

•'  30.  Dep.  con. 

"  31.  B.M.F.  Ibs.Co. 


woo'oo 

828  i») 

7873  ^ 
317  SO 


2  00  no 


S864  50 

uiloo 
sMslao* 

949  88 

8393  n" 

9»w!oo 


10293,88 
7«i)|t)» 

iioj.1 57 

195,(10 
10868. 0' 


(76) 


JOURNAL. 


JOURNAL- 


As  the  Journal  is  Btill  used  in  some  houses,  it  is  very  desirable  that  the 
student  should  at  least  know  how  to  Journalize,  so  as  to  clearly  understand 

the  term. 

I  have  introduced  what  I  consider  to  be  the  best  form  of  Journal,  embracing 
the  first  montli's  business  of  these  books,  sufficient  to  enable  the  student  to 
thoroughly  comprehend  the  design. 

Journalizing  is  merely  giving  the  Ledger  titles  to  the  entries  from  the  books 
of  ori^nnal  entry  upon  the  Journal  previously  to  posting. 

The°po8ting  figures  to  the  Ledger  are  inserted  as  though  the  transactions 
for  this  month  had  been  posted  from  this  Journal,  instead  of  from  the  books 
of  ori-inal  entry.  Upon  comparison  it  will  be  found  that  the  results  are  iden- 
tically the  same  as  those  without  this  book ;  thereby  proving  its  utter  mutihty, 
to  say  nothing  of  the  sheer  waste  of  time,  increased  liability  of  error,  and  the 
increased  opportunity  for  covering  up  misdeeds  by  a  fraudulent  book-keeper. 
7*  (77) 


<  m 


Drs. 


BOOK-KEEPING. 


Boston^  \8t  January,  18— 


Crs. 


Miscella-      «j„ 
neou«.        Mdse 

Caah 

jiLed 
•  !  Pag* 

Merchandise 

Ctuh. 

Mdse. 

Miscella- 
neous. 

12500( 

30 

12500  0 

0 

2 

Ship  Sultana 

10000  0 

0 

3500 

3 

0 

Real  Est.  at  Brookline 
Cash 

80000 

0 

5 

Bank  of  Commerce 

2760  0 

0 

6 

Bills  Receivable 

»75a 

' 

7 

Albert  Knowles 

687  0( 

}! 

8 

Robert  Vanevar 

550  0< 

) 

9 

Samuel  T.  Gordon 

478  0< 

) 

10 

Rollins  Bros.  &  Co. 

450  0( 

) 

11 

Henry  Underwood 

12 

Bills  Payable 

5300  00 

13 

William  Jones 

2600  00 

14 

Quincy,  Dane  &  Co. 

1800  00 

15 

Daniel  Davis 

950  00 

16 

George  N.  Comer 

38600i00 

14 

9d. 

1 

787  50 

William  Jones, 

Merchandise 

787  5( 

) 

100  OC 

► 

•>d. 

Cash, 

Merchandise 

100  0( 

> 

n<]. 

1223  80 

Bills  Receivable, 

Merchandise 

1223  80 

500 

"id. 

Cash, 

7 

Albert  Knowles 

600  00 

28 

•id. 

650  00 

Expense, 

Cash 

550  00 

2158  42 

^♦ii 

Merchandise, 

14 

Quincy,  Dane  &  Co. 

I  2158 

12 

200  00 

nth. 

Cash, 

14658  42 

1 

1150  00 

• 

Merchandise 
Am'ts  carried  forward 

550  00 

1     1 

200  00 

J 

51908^ 

1 

38961  30 

2311  30 

12 

(78) 

~ 

Drs. 


JOURNAL. 

Boston,  Gth  January,  18— 


Crs. 


Led. 


Miscella-      -^^^^^^        Cash.     ii^^' 


38961 


600 


30  14658  42  1150 1 00, 
250  00 


00 


507 


853 


21 


60 


2500 


3449 


1145 


68 


50 


200 


Cash.  II  Mdse. 


ii 


Am'ts  brought  forw'd 
Cash, 

Samuel  T.  Gordon 

6th — 


00 


125 


42593 


31 


OOi 


BANK  OF  Commerce, 

Cash 
.  8th - 


Merchandise, 
Bills  Payable 
Cash 

8th 


550100, 


500 


06 


300 


00 


17 

6 
18 


Cash, 

Merchandise 
10th 


00 


303 


Merchandise, 
Alfred  Arnot 
12th 


00 


90 


20137  81 


387 


Merchandise, 
Bank  of  Commerce 

13th 


21 


2311 


30 


Miscella* 
neous. 


51908  42 


250 


William  Smithson, 

Merchandise 
13th 


Cash, 

Merchandise 

15th 


17 


00 


2287 


00 


Merchandise, 

Cash 
16th 


Alfred  Arnot, 
Bills  Payable 
IGth 


200 


00 


00 


31 


550 


00 


3449 


1145 


8 


Cash, 

Robert  Vanevar 

17th 


Real  Est.Brookline 
Cash 

Am'ts  carried  forward 

(79) 


00 


507 


300 


60 


00 


68 


50 


125100 

I        ' 
1509,21 


3318 


90 


2500 


387 


00 


00 


60190 


60 


(i 


fi 


lU 


m 


Drs. 


BOOK-KEEPING. 
BostoHy  Vith  January y  18— 


CR8. 


Miscella- 
neous. 


Mdae.    '    Cash. 


4259.3  W  20137,81  2287  00 
600  00 


2000  00 


2000  00 


111 


225 
225 


130 


001 


00 

00 


00 


950:00 


750' 0(> 


4948490 


513  07 


175 


00 


Led, 
Page 

19 
20 


Caah. 


Mdae. 


iMiiiccIla* 
neous. 


Am'ts  brought  forw'd 
George  C.  Naylor, 

Olivera  &  Co. 
19th. 


215 


Cash, 

Merchandise 
20th 


1509 


21 


Bills  Payable, 
Merchandise 
Bills  Payable 

20th 


Merchandise, 

Cash 
22d 


00 


28 
5 


563 


20651  48  3240 


Bank  of  Com.merce, 
Bills  Receivable 


_  22d. 


Expense, 

Bank  of  Commerce 
22d. 


513 


67 


21 
11 


45 


Cash, 

Merchandise 
23tl 


Bills  Receivable, 
Profit  and  Loss 
Henry  Underwood 

24th 


asis 


175 


1290 


90  60190  CO 
500  00 

ooi 


Real  Est.Brookline 

Bills  Payable 
24th 


15 


45 


Cash, 

Merchandise 
24th.  _ 


Daniel  Davis, 
Cash 

25th 


Bills  Receivable, 
Bills  Payable 


00 


215 


710  00 


950 


00 


Amts  carried  forward :  12972  88 


663 


00 


2000 


111 


00 


00 


45 


450 


130 


00 


00 


5562  35  04841 


750  00 
00 


(80) 


Drs. 


JOURNAL. 

Bostov,,  26th  January,  l^— 


Crs. 


Miscella- 1  Ty.jg. 
neous.  I  *^^®*- 


494t^  90,  20651 
9500 1 00 
7500 1 00* 
3000  00 
1000  00 


48 


1500 


949 


00 


68 


18  99 


6000 
4000 


00 
00 


2000 


760 


195 


00 


00 


00 


3675  00 


3240 


Cash. 


45 


1000 


478 


Led. 
Page 


00 


00 


24 
22 
25 


430 


50 


2000 


00 


89583  57  20651 


48 


10 


13 


17 
5 


Cash. 


Am'ts  brought  forw'd 
House  &  Land,Walt'm 
Exchange  Bank  Stock 
Western  K.  II.  Stock 
Bills  Receivable 
Cash 

Est.  Edw.  Evans 
J6th 


Cash, 

Rollins  Bros.  &  Co. 
26th 


2972 


88 


28 


26 
27 

16 


William  Jones, 
Cash 

27th 


Alfred  Akxot, 

Bank  of  Commerce 
27th 


Cash, 

Merchandise 
27th 


Profit  and  Loss, 

Cash 
29th 


1500 


Mdse. 


'  Miscella- 
neous. 


5562 


35 


Farm  in  Watcrtown 
Fitchburg  R.  R.  Stock 
Cash 

Geo.  N.  Comer 
29th 


17148  95 


24 
5 

10 


Bank  of  Commerce, 

Cash 
30th 


Bank  of  Commerce, 

Bills  Receivable 
31st 


18 


00 


99 


2000 


House  at  Waltham, 
Bank  of  Commerce 

31st 


Rollins  Bros.  &  Co., 
Merchandise 

Am'ts  carried  forward 

~~        (81) 


430 


00 


6491 


64811  CO 


22000 


478 


00 


00 


50 


949  68 


12000 


00 


3675 


87 


9667 


00 


85 


760 


195 


101224 


00 


00 


28 


Drs. 


BOOK-KEEPING. 
Boston,  31a<  January,  18— 


Crs. 


MiscetU- 
neoua. 


89583  57 
200  00 


Mdse. 


20651 


48 


Cash. 


7148 


95 


Led 
P>Mfe 


16 


Amt's  bro't  forw'd 
Geo.  N.  Comer, 
Cash 


Caah. 


MdM. 


Miscella- 
neotu. 


&491I87 


200 


00 


9667 


85 


101224 


28 


89783:57  20651 

I     li- 


7148 
20651 
89783 


117684 


06 

48| 
57 

00 


4 
1 


Cash 

Merchandise 

Miscellaneous 

Proof. 
Dr.  Cash    $7148.95 
Cr.     "  6691.87 

Balance      457.08 


6691 
9667 


''I 

85: 


101224  28 


117584 


00 


9667 


(83) 


'9  i 

i 


THE    BOOKS    OF 


ACCURATE    ACCOUNTANT. 


TEST  SET  FOR  PRACTICE. 

The  following  are  the  records  of  the  transactions  of  a  merchant  named 
*'  Accurate  Accountant "  during  three  months'  business  ;  written  down  in  the 
rotation  in  which  they  occurred,  without  any  reference  to  the  style  of  entry, 
or  the  book  upon  wliich  they  should  be  made.  The  student  is  required  to 
write  out  each  entry  in  proper  form  on  its  appropriate  book,  (the  intention  be- 
iD<r  to  keep  only  two  books  of  original  entry,  a  Day  Book  and  Cash  Book,) 
just  as  the  entries  of  similar  actual  transactions  would  be  made,  and  post  each 
day's  business,  day  by  day,  to  the  proper  accounts  on  the  Ledger. 

My  object,  by  this  means,  is  to  facilitate  the  learner  in  making  ongmal  en- 
tries. A  copy  of  the  Trial  Balances,  as  taken  from  the  Ledger,  is  given  for 
the  purpose  of  showing  the  results,  and  to  enable  the  student  to  ascertain 
whether  the  entries  have  been  correctly  made  and  posted. 

A  person  who  can  readily  make  these  entries  and  carry  them  through  the 
books  in  accurate  form,  need  have  little  doubt  of  his  abiUty  to  commence  tak- 
ing the  charge  of  any  set  of  books. 

Boston,  1st  March,  18 — . 

I  commence  business  this  day  with  the  following  property :  Real  Estate 
at  Auburndale,  valued  at  $10,000.  Ship  Mary  K.  Comer,  $25,000. 
Cash,  $325.  Boston  Bank,  on  deposit,  $r.750.  Merchandise  per 
Stock  Book,  $11,250.  BUls  Receivable,  per  Bill  Book,  $3375.  Samuel 
Unwin  owes  me  on  book  account,  $1125  ;  Philip  Vinton,  $1150  ;  Mar- 
ket, Price  &  Co.,  $575 ;  Hyde  &  Inman,  $600  ;  Peter  Doolittle,  $650, 

My  Liabilities  are  as  follows :  Bills  Payable  per  Bill  Book,  $3125.  I 
owe,  on  book  account,  Hope,  Trust  &  Co.,  $3375  j  Little  &  Sharp,  $575 ; 
Robards  &  Stevens,  $425. 

Paid  Cash  for  fitting  up  Store,  &c.,  $187.50. 

Sold  Hope,  Trust  &  Co.  Merchandise  per  Sales  Book,  $1000. 

Sold  Daniel  Defoe,  Merchandise,  $1250,  and  received  in  payment  his 
Note  at  6  months,  $1250. 

Bought  of  Little  &  Sharp,  on  Book  account.  Merchandise,  per  Invoice 

Book,  $2225.75. 
Received  Cash  for  Merchandise  sold  this  day,  $318.25. 
Bought  of  Charles  Carroll,  Merchandise,  $925,  for  which  I  delivered  to 

him  my  Note  at  0  months  for  $050;  and  paid  him  the  balance,  $275,  in 

Cash. 
Received  per  Cora,  Capt.  Cobb,  from  Orcutt  &  Page,  Surinam,  agreea- 
bly to  my  order,  Merchandise,  per  Invoice,  $4200. 

(83) 


2d. 

3d. 

5th. 


6th. 
8th. 


I 


9th. 
10th. 

12th. 

15th. 

16th. 

18th. 

19th. 


20th. 
22d. 
23d. 


25th. 


M 


26th. 
29th. 


30th. 


31st. 


BOOK-KEEPING. 

Paid  Cash  to  J.  Workwell  for  Repairs  on  House  at  Aubumdale,  $175. 

Received  Cash  for  Merchandise,  8125. 

Received  of  Samuel  Unwin  Cash  on  account,  $900. 

Paid  Robards  &  Stevens  Cash  in  full,  $425. 

Drew  Check  for  Specie  to  pay  Duties  on  Merchandise  from  Surinam, 
$812 ;  also  Check  to  pay  Capt.  Cobb  for  Freight,  &c.,  $370.  Paid  Cash 
for  Cartage  and  V/harfage  on  same,  $28.50. 

Accepted  Orcutt  &  Page's  Draft  at  20  days'  sight  in  favor  of  James 
Johnson,  $2225. 

Received  Cash  for  Merchandise,  $100. 

Delivered  to  Charles  Evelyn  my  Order  on  Daniel  Defoe  for  goods  to  the 
amount  of  $175. 

Received  of  Market,  Price  &  Co.,  Cash  in  full,  $575. 

Delivered  to  Jones  and  Vose,  on  Labor  &  Livewell's  account,  per  their 
order.  Merchandise,  $125. 

Received  Cash  for  Merchandise,  $262.50. 

Received  of  Freeman  &  Co.  my  Note  of  15th  of  February  for  $1158  ;  in 
satisfaction  for  which  I  sold  them  Merchandise,  $6o6,  and  delivered 
to  them  my  Nc^e  at  3  months  for  the  balance,  $<)00. 

Delivered  to  Suffolk  Fire  Ins.  Co.  for  Insurance  of  Merchandise  in 
Store,  my  Check  for  $175. 

Deposited  in  Boston  Bank,  for  collection,  Richard  Prince's  Note  of  25th 
January,  for  $.300. 

Received  of  Hyde  &  Inman  Cash  on  account,  $360. 

Paid  Frank  Hosmer  for  Merchandise,  $550. 

Peter  Doolittle,  having  failed,  makes  a  composition  of  12  per  cent.  Re- 
ceived of  him  Thomas  Sheldon's  Note,  in  full  settlement  for  $78. 

Delivered  to  People's  Mutual  Fire  Ins.  Co.  my  Note  for  $120,  for  insur- 
ance oi  Buildings  at  Auburndale. 

Bought  oi  John  Reckers,  at  2  per  cent,  premium,  his  Draft  on  A. 
Glen  &  Co.,  Surinam,  for  $1975.  Delivered  therefor  my  Check,  $1975, 
and  Cash  for  Premium,  $39.50.  Remitted  the  above  Draft  to  Orcutt 
&  Page,  Surinam,  to  close  account. 

Received  Cash  for  Merchandise,  $178.50. 

Having  been  appointed  Administrator  of  the  Estate  of  the  late  Benja- 
min Ero^vn,  I  have  received,  and  hold  in  trust  for  the  heirs,  Forty 
Shares  Westem  R.  R.  Stock,  apprised  at  $4200 ;  Fifty  Shares  3Ier- 
chants  Bank  Stock,  $5100  i  Store  on  Washington  Street,  $5575; 
Cash,  $525. 

Exchanged  Notes  with  William  Winter  for  his  accommodation,  for 
$575,  at  GO  days. 

A  Legacy  of  $12,500  having  been  left  me  by  Mrs.  Mary  Wade,  I  have 
this  day  received  of  her  Executors  a  Deed  of  Farm  in  Fitchburg, 
valued  at  $5ri'25,  their  Check  on  Freemen's  Bank  for  $6250,  which  I 
have  deposited  in  Boston  Bank  to  my  credit,  and  $025  Cash. 

Received  Cash  for  Merchandise,  $142.28. 

Deposited  in  Boston  Bank,  for  collection,  Henry  Howard's  Note,  due 
14th  April,  for  $475.50 ;  also  B.  Sparrow's  Note,  due  IGth  Apr,  for  $1500. 

Paid  Hope,  Trust  &  Co.  on  account,  $2150. 

Received  of  Gleeson  &  Powers  their  Note  at  6  months,  for  $260,  on 
account  of  Estate  of  Benjamin  Brown. 

Delivered  to  State  Mutual  Fire  Ins.  Co.,  for  Insurance  of  Store  on 
Washington  Street,  my  Note  for  $78. 

Withdrew  Cash  for  Personal  Expenses,  $175. 

(84) 


BOOKS  OF  ACCURATE  ACCOUNTANT. 


2d. 


3d. 


6th. 


eth. 


8th. 
9th. 

12th. 


14th. 


16th. 


1st  April,  18 — . 

Sold  Labor  &  Livewell,  on  book  account.  Merchandise,  $550.  Re- 
ceived their  Note  at  90  day8,Yor  $075,  in  full. 

Received  of  Capt.  Harrison  Cash,  $2000,  being  my  share  of  Net  Freight 
of  Ship  Mary  K.  Comer. 

Paid  Haydcn  Morse,  Clerk,  Cash  in  full  to  date,  $137.50. 

Insured  my  life  at  the  State  Mutual  Life  Ins.  Co.  for  $6000. 

Delivered  my  Check  for  the  annual  premium,  $158.80. 

Received  Cash  of  Ward  &  Bell  for  Rent  of  Store  on  Washington  Street 
to  date,  $115. 

Paid  Cash  to  Small  &  Rich  for  Chronometer,  presented  to  Capt.  Harri- 
son, $237.25. 

Bought  of  Hyde  and  Inman,  on  book  account.  Merchandise,  $240. 

Received  of  Philip  Vinton,  in  full,  Cash,  $1150. 

Paid  at  Ocean  Bank  my  Acceptance  of  Orcutt  &  Page's  Draft,  Cash, 

$2225. 

Received  Cash  for  Merchandise,  $228.14. 

My  Buildings  at  Auburndale  having  been  damaged  by  fire  on  the  .30th 
ultimo,  the  People's  Mutual  J^re  Ins.  Co.  have  this  day  delivered  to 
me  their  Check  on  the  Mechanics'  Bank  for  $3535,  (which  I  have  de- 
posited to  my  credit  in  the  Boston  Bank,)  and  returned  me  my  Note 
of  22d  March  for  $120. 

Drew  Check  for  Freight,  &c.,  of  Merchandise  received  on  Consignment 
from  Watson  &  Green,  Havana,  $175,  and  for  their  Draft  at  sight, 
favor  of  F.  Ximines,  $875. ' 

Received  of  Charles  Evelyn  on  account.  Cash,  $125. 

Paid  Cash  for  Drayage  and  Labor  on  Consignment  from  Watson  & 

Green,  $3.10. 

Sold  Daniel  Defoe  Watson  &  Green's  Merchandise,  at  4  mos.,  $787.50, 

Received  of  L.  P.  Beck,  for  crop  of  Farm  in  Fitchburg,  Cash,  $500. 

Paid  Price  &  Co.,  for  Stationery,  Cash,  $45. 

Advanced  to  Little  &  Sharp,  in  consideration  of  Invoice  of  Goods  con- 
signed to  me  for  sale.  Check  for  $275. 

Received  Cash  for  Merchandise,  $300. 

Paid  Cash  for  Drayage,  &c.,  on  Consignment  from  Little  &  Sharp,  $2.98. 

Sold  H.  A.  Poor  Watson  &  Green's  Merchandise,  at  3  months, 
$350;  Little  &  Sharp's  Merchandise,  at  4  months,  $458.50;  Mer- 
chandise from  Store,  at  6  months,  $1225.  Received  in  payment  his 
averaged  Note  dated  10th  inst.,  at  5  months  for  the  whole  amount, 
$20.33.50. 

Receive4  Cash  for  Merchandise,  $015.80. 

Paid  Cash  to  A.  Groom  for  Repairs  on  Farm  at  Fitchburg,  $312.50. 

Drew  Check  for  Duties  on  Merchandise  consigned  to  me  for  sale  by 
Guelph  &  Co.,  Halifax,  $1000. 

Shipped  to  Jamaica,  and  consigned  to  Hope,  Trust  &  Co.,  to  be  sold  on 
my  account,  Merchandise,  $2700. 

Paid  Cash  for  Freight,  &c.,  on  Shipment  to  Jamaica,  $144. 

Shipped  per  Hudson,  Capt.  Steel,  and  consigned  to  D.  Gibb  &  Co., 
Calcutta,  to  be  sold  on  account  of  George  C.  Gore  and  myself.  In- 
voice of  Merchandise  bought  of  Farleigh  &  Co.,  by  my  Check,  $M00 ; 
Invoice  of  Merchandise  bought  of  F.  Sewell,  for  my  Note  at  3 
months,  $3-300  ;  Invoice  of  Merchandise  bought  of  Hams  &  Son  for 
G.  C.  Gore's  Note  at  3  months,  $2750.  G.  C.  Gore  paid  the  Lasur- 
ance,  Shipping  Expenses,  &c.,  $1650 
8  (85) 


■  i 


lU 


19th. 


ill 

r     If 

'■I 


20tll. 


2l8t. 

23d. 

26th. 


27th. 


29th. 


30th. 


BOOK-KEEPING. 

Received  Cash  for  Merchandise,  $385.75. 

Paid  Cash  to  Ralph  Doanc,  on  account  of  rebuilding  House  at  Auburn- 
dale,  $360. 

Sold  Martin  &  Cross  Watson  &  Green's  Merchandise,  $1750. 

Received  of  George  C.  Gore  Cash  on  account,  $2200. 

Deposited  in  Boston  Bank  Cash,  $4200. 

Rendered  Account  Sales  to  Watson  &  Green.  Total  amount  of  Sales 
of  their  Consignment,  $2887.50.  Commission  5  per  cent.  Guaran- 
ty, 22  per  cent.  Advertising,  $3.87.  Expenses  already  posted, 
$178.10.    Leaving  tlieir  net  sales  ^488.97.  . 

Shipped  per  Carrie,  Capt.  Craft,  and  consigned  to  Foresight  &  Fear- 
less, California,  to  be  sold  on  joint  account  of  them,  Paywell  & 
Prosper,  and  myself,  Merchandise  from  Store  to  the  amount  of 
$4583.50. 

The  remainder  of  Little  &  Sharp's  Merchandise,  taken  at  highest  mar- 
ket value,  $573 ;  385  barrels  Flour,  at  $5  per  barrel,  bought  of  C. 
Whitbread  for  my  Check ;  517  barrels  Flour,  bought  of  Elwell  &  Co. 
for  my  Note  at  GO  days,  $2455.75. 

Insurance,  Drayage,  &c.,  paid  by  my  Check,  $151. 

Received  Cash  for  Merchandise,  $312.50. 

Rendered  Account  Sales  to  Little  &  Sharp.  Total  amount  of  sales, 
$ia31,50.  Commission,  2 a  per  cent.  Guaranty,  2^  per  cent,  on  $458.50. 
Advertising,  $1.37.  Expenses  already  posted,  $2.98.  Leaving  their 
net  sales  $989.90. 

Received  of  (Jeorge  C.  Grore  his  Note  at  60  days,  for  $1100. 

Received  of  Paywell  &  Prosper  Cash  on  account,  $3025. 

Deposited  Cash  in  New  England  Bank  to  open  account,  $3150. 

Accepted  Guelph  &  Co's.  Draft  at  20  days'  sight,  favor  of  Harvey 
Drake,  for  $2500. 

Received  Cash  for  Merchandise,  $125.25. 

New  England  Bank  has  this  day  discounted  H.  A.  Poor's  Note  for 
$2033.50,  and  placed  net  proceeds,  $1988.09,  to  my  credit. 

Received  Cash  from  New  England  Bank  on  my  Check,  $2500. 

Received  Cash  from  Boston  Bank  on  my  Check,  $3450. 

Paid  Cash  to  Anson  James,  for  Deed  of  Land  at  Cambridge,  $5950. 

Sold  to  Harry  Breen  Guelph  &  Co.'s  entire  Consignment,  $6250.  Re- 
ceived his  Note  at  90  days,  for  $3750,  and  the  balance  in  Cash. 

Paid  Cash  for  Labor,  &c.,  on  the  above  Consignment,  $14.06. 

Deposited  Cash  in  New  England  Bank,  $2500. 

Rendered  Account  Sales  to  Guelph  &  Co.  Total  amount  of  sales,  $6250. 
Commission,  5  per  cent.  Guaranty,  2'  per  cent,  on  $3750.  Other 
expenses  already  charged,  $1014.06.    Leaving  their  net  sales  $4829.69. 

Paid  Cash  to  Otis  Cross  for  Wood  and  Coal,  $78. 

Received  Account  Sales  from  Hope,  Trust  &,  Co.  Amount  net  sales 
due  me  and  subject  to  my  order,  $3150.  Withdrew  Cash  for  Personal 
Expenses,  $200. 

(86) 


BOOKS  OF  ACCURATE  ACCOUNTANT. 


3d. 


1st  May,  18—. 

Deposited  in  Boston  Bank,  for  collection,  William  Winter's  Note  of 

20th  March,  $575.  4-11^550 

Received  Cash,  Dividend  on  Western  K.  R.  Stock,  $315.50. 
Sold  George  C.  Gore,  on  book  account,  fths  Ship  Mary  K.  Comer,  lor 


4th. 
6th. 

6tb. 
8th. 

10th. 


12th. 
13th. 


15th. 


17th. 


19th. 
20th. 


Bought  of  George  C  Gore,  on  account.  Merchandise,  $3906. 
Received  Cash  for  Merchandise,  $114./2.  i.  iir «,.„!, o« 

Received  from  Foresight  &  Fearless,  California,  Invoice  of  Merchan- 
dise to  be  sold  on  our  joint  account,  $6600. 
P^d  cash  for  Freight,  &c.,  on  Merchandise  from  Cahorma,  $353.10. 
Received  Cash,  Dividend  oa%Iorchants  ^ank  ^tock,  $19a 
Sold  Hasty  &  Driver,  to  be  paid  for  in  a  few  days.  Merchandise,  $360. 
Paid  Cash  for  advertising  in  Courier,  $12.  .      ^.       -.„„e 

Both?  of  Samuel  Unwin,  on  book  account,  Merchandise,  $225. 
Borrowed  Cash  of  Otis  White,  $1100. 

Paid  Cash  for  advertising  in  Atlas,  $12.  .,.^^  *oo^ 

Sold  Hope,  Trust  &  Co.,  on  book  account.  Merchandise,  $225. 
T?pccived  Cash  for  Merchandise,  $550.  ^^       -r.     ,     j  t>„«v 

Sired  to  Little  &  Sharp,  on  account,  Check  on  New  England  Bank 

for  $3250. 
Received  Cash  for  Merchandise,  $330. 
Paid  Cash  for  advertising  in  Journal,  $15. 

Sold  B.  Spinney,  to  be  settled  for  in  a  few  days,  Merchandise,  $ii""- 
Sold  Abner  Green  Farm  in  Fitchburg  for  $4950,  which  amount  he  has 

deposited  to  my  credit  in  New  England  Bank. 
Received  Cash  of  Hasty  &  Driver  for  Merchandise  sold  to  them  on  the 

4th  instant,  $360. 
Paid  Brown  &  Allen  for  Gold  Pen,  $2.75. 
Received  Cash  of  New  England  Bank  on  my  Check,  $1100. 
Received  Cash  for  Merchandise,  110.  ,   ^h^a  K^rmwPd  of 

Paid  Cash  to  Otis  White,  $1101.47,  being  pnncipal,  $1100,  borrowed  of 

him  the  5th  inst.,  and  interest  on  same,  $1.47. 
Received  of  Martin  &  Cross,  to  close  account,  their  Note  at  90  days 

for  $1777.12,  being  principal,  $1750,  with  interest,  $27  12,  added. 
Paid  Cash  at  Merchants  Bank  my  acceptance  Guelph  &  Co.  s  Draw, 

Re^^d  to  Roscoe  &  Co.,  Baltimore,  per  request  of  G^^^P^^  ^' 
contained  in  their  last  advice,  and  to  close  my  account  with  them,  my 
Draft  of  this  date  on  Watson  &  Green  for  $2,329.69. 
Paid  Cash  to  Frederick  Lawson  for  surveying  and  laying  out  Land  at 

Cambridge  into  four  lots,  $54.50. 
Received  Cash  of  Peter  Glibb,  net  proceeds  ofCon^igrnment  of  Mer- 
chandise from  Foresight  &  Fearless,  sold  by  him  at  auction,  $"<^- 
Rendered  Account  Sales  to  For.sight  &  Fearless.    Expenses  already 

posted,  $353.10,  leaving  net  proceeds  in  joint  account,  $.346.90. 
Deposited  Cash  in  Boston  Bank,  $5500. 
Received  Cash  of  Boston  Bank  on  my  Check,  $2200. 
Loaned  Cyrus  Crane  Cash,  $2200.  „„«„„„+ nf  Fore- 

Shipped  to  Barter  &  Sale,  New  Orleans,  to  be  sold  ^^\^^f^l.^^^^. 
Bight  &  Fearless,  as  per  their  order  contamed  in  last  advice,  Mer- 
i     chandise  amounting  to  $3300. 

(87) 


h 


22d. 


24th. 


26th. 


28th. 


29th. 


80th. 

3l8t 


iini 


BOOK-KEEPING. 

Sold  to  Charles  Evana  two  lots  of  land  at  Cambridge,  for  $3200,  and 
received  in  payment  C.  Breed's  ^'ote  in  his  favor,  at  3  moutlis,  lor 
that  amount. 

Received  Cash  for  Merchandise,  $143. 

Paid  Cash  for  Postag^e  Account,  Su.14. 

Drew  Check  on  Boston  Bank  for  Ralph  Doane  hi  fuU,  for  rebuildin^r 
House  at  Auburndale,  $3000.  ° 

Paid  Cash  for  cleaning  Store,  Ac,  $14.30. 

Received  of  B.  Spinney  John  Smith's  Note,  indorsed  by  William  Stud- 
ley,  in  lull  for  Merchandise  sold  him  the  10th  iust.,  $1100 

Received  Cash  of  Daniel  Defoe,  on  account,  $,00 

^ZZ  ^^""^  ""I^  ^^^^""^  ^'^^  *°  ^"^  "P  William  Whiter'B  Note  of 
20th  March,  $575. 

Received  his  Note  at  60  days  for  $581.04,  bemg  principal,  $575,  with 
mterest,  $6.04,  added.  f    ,  v^^o,  y^^u 

Paid  Cash  at  Ocean  Bank  to  take  up  my  Note  to  William  Winter,  $575. 
Received  Cash  for  Merchandise,  $.330. 

Drew  Check  on  New  England  Bank  for  H.  Robb,  for  rent  of  Store  to 
date,  $.3:10. 

Paid  Watson  &  Green's  sight  Draft  in  favor  of  J.  Davis,  $793.66. 
Accepted  Lugene  Lemoin's  Draft  for  .«- 125  in  favor  of  Oscar  Gilbert, 

at  10  days'  sight,  on  account  and  request  of  Foresight  &  Fearless, 

California,  contained  in  their  last  advice. 
Received  Cash  of  Cyrus  Crane,  $22(H.05,  being  principal,  $2200,  loaned 

him  the  19th  inst.,  with  interest,  .$j.0o,  added. 
Paid  Cash  to  Hayden  Morse,  Clerk,  in  full,  $275.00. 
Withdrew  Cash  for  Personal  Expenses,  $215, 
Deposited  Cash  in  New  England  Bank,  $;i.300. 
Merchandise  on  hand,  per  Stock  Account  taken  thia  day,  $8000. 


LEDGER. 


TRIAL  BALANCE. 


Drs. 

Marchy  18 — 

C 

R9. 

DiflFerence. 

1 
Amount. 

Ledger 
Page. 

Names. 

Amount. 

Differ'ce. 

$    10295  00| 

10295 

00 

Real  Estate  at  Auburndale 

! 

1 

175 

00 

Accurate  Accountant 

65800 

00 

65625 

00 

25000 

00 

25000 

00 

Ship  Mary  K.  Comer 

4200 

00 

Orcutt  &  Page 

4200 

00 

431 

03 

4436 

53 

Cash 

4005 

50 

175 

00 

175 

00 

Charles  Evelyn 

12003 

50 

153.35 

50 

Boston  Bank 

3332 

00 

16301 

72 

20361 

25 

Merchandise 

4059 

53 

Daniel  Defoe 

175 

00 

175 

00 

3202 

50 

6538 

00 

Bills  Receivable 

2335 

50 

125 

00 

125 

00 

Labor  &  Livewell 

225 

00 

1125 

00 

Samuel  Unwin 

900 

00 

Estate  of  Benjamin  Brown 

15660 

00 

15660 

00 

1150 

00 

1150 

00 

Philip  Vinton 

4200 

00 

4200 

00 

Western  R.  R.  Stock 

1 

575 

00 

Market,  Price  &  Co. 

575 

00 

6100 

00 

5100 

00 

Merchants'  Bank  Stock 

240 

00 

600 

00 

Hyde  &,  Inman 

360 

00 

6653 

00 

5G53 

00 

Store  on  Washington  Street 

650 

00 

Peter  Doolittle 

650 

00 

6625 

00 

5625 

00 

Farm  in  Fitchburg 

1158 

00 

Bills  Payable 

7373 

00 

6215 

00 

362 

50 

362 

50 

Expense 

3150 

00 

Hope,  Trust  &  Co. 

3375 

00 

225 

00 

611 

50 

611 

50 

Profit  &  Loss 

• 

Little  &  Sharp 

2800 

75 

2800 

75 

75 

425 

00 

28 

Robards  &  Stevens 

425 

00 

28 

$   90700 

116026 

% 

116026 

90700 

75 

Vn^nnf 

Amt.  of  D.  B.  Add'ns  $107909.25 

«      "  Cash  received     4111.53 

"      «'    "      paid            4005.50 

$110026.28 

'k 


8* 


(89) 


Dks. 


BOOK-KEEPING. 

TRIAL  BALANCE. 

April,  18— 


Crs. 


Difference.    '  Amount,  i,^^®' 


$      7000  00 


;  *5 


i 


45 
23000 

51.38 

40i 

50 

6950 

7328 

5515 

612 

8727 


41 
00 

09 
08 
00 


00 
70 
78 
50 

50 


225  00 


6050 

4200 

5100 
1750 

5538 

6437 


360  00' 

200100 
2887150 

45:41: 

875100 

76.38109 

19532  44 


00 

00 

00 
00! 


00 
50 


m3i 

5950 

7735 

240 

787 
6250 
7558 

550 


50 
00 
00 
00 
50 
00 
50 
00 


2844  OO 


617 '76! 
3229  42 


oo:! 

55ii 

4i;i 


2925 
1007 
3229 

6000 
204  42 


00 


$109286 


00 

00 
00; 

50 

oo' 

260  50 
3229  42 
.3150^00 

396105 
3220  41 

275100 

6ooo;oo 

3229  42 


6050 

6050 
1750 

312 
2^5 


2500 


12  103262 


00 


24 


Names. 


Amount. 


Real  Estate  at  Auburndale 

Accurate  Accountant 

Consgt.  from  Watson  &  Green 

Interest 

Ship  Mary  K.  Comer 

Watson  &  Green 

New  England  Bank 

Cash 

Charles  Evelyn 

Consgt.  from  Little  &  Sharp 

Real  Estate  at  Cambridge 

Boston  Bank 

Merchandise 

Daniel  Defoe 

Cons^.  from  Guelph  &  Co. 

Bills  Receivable 

Labor  &  Livewell 

Shipt.  to  Hope,  Trust  &  Co. 

Samuel  Unwin 

Estate  of  Benjamin  Brown 

Shipt.  to  Calcutta 

Philip  Vinton 

Western  R.  R.  Stock 

George  C.  Gore 

Merchants'  Bank  Stock 

3Iartin  &  Cross 

Hyde  &  Inman 

Store  on  Washington  Street 

Commission 

Farm  in  Fitchburg 

Guaranty 

Bills  Payable 

Expense 

Shipt.  to  California,  Co.  F.  &  P. 

Hope,  Trust  &  Co. 

Profit  &  Loss 

Foresight  and  Fearless,  Calif  a 

Little  &  Sharp 

Life  Insurance 

Paywell  &  Prosper 

Suspense 

Guelph  &  Co. 


3655 

2887 

2000 
2488 
2500 
19559 
125 
1031 

12409 
11025 

6250 

2033 

675 

3150 


Differ'ce. 


1150 
7700 


00 

50 

00 
97 
00 
39 
00 
50 

SO 

»i 

00 
50 
00 
00 


6^425 


1613 


00 
00 


3025 
6000 

4829 


.Proof,- 


Amt.  of  D.  B.  Add'ns  $61170.41 
"  "  Cash  received  1V»53'J.44 
"      «    "      paid  19559.39 


$103262.24 


103262 


240 
115 
482  66 
500' 00 
177140 
8255  75 
5  24 


90 

00 
00 
69 

24 


00 


97 


306  00 
15660  00 


1650  00 


482 

177 
12125 


3515 


66 

40 
75 


6S 


6000100 
2:J29!69 


109286  12 


Drs. 


LEDGER. 

TRIAL  BALANCE. 

May,  18— 


Crs. 


Difference. 

Amount. 

Ledger 
Page. 

$  10000  00 

3000 

00 

215 

00 

9  67 

1 

47 

17444  00! 

1 

793 

66 

8708  09: 

8250 

00, 

723  43 

60  00; 

17252 

27 

2804  50 

54 

50 

7628  70 

6075 

00 

3084 

00: 

4131 

00 

14810 

66 

6658 

16 

6050 

00 

1 

3300 

00 

3884 

50 

5550 

00 

4905 

00 

7700 

00 

5538 

00 

487 

50 

3075 

00 

1287 

95 

670 

19 

3229 

42 

3i5o;oo 

225 

00 

f)34 

10 

1680 

96 

5425 
3250 

00 
00 

6000 

00 

204 

42 

2329 

69 

112 

50 
46 

Qi 

$  102427 

77961 

Names. 


Real  Estate  at  Auburndale 

Accurate  Accountant 

Interest 

Ship  Mary  K.  Comer 

Watson  &  Green 

New  England  Bank 

Cash 

Charles  Evelyn 

Real  Estate  at  Cambridge 

Boston  Bank 

Merchandise 

Bills  Receivable 

Shipt.  to  Hope,  Trust  &  Co. 

Samuel  Unwin 

Estate  of  Benjamin  Brown 

Shipment  to  Calcutta 

Loan  Account 

Western  R.  R.  Stock 

Georg'e  C.  Gore 

Merchants'  Bank  Stock 

Martin  &  Cross 

Merchandise  Co.  F.  &  F. 

Store  on  Washington  Street 

Commission 

Farm  in  Fitchburg 

Guaranty 

Bills  Payable 

Expense 

Shipt.  to  California,  Co.  F.  &  P. 

Hope,  Trust  &  Co. 

Profit  &,  Loss 

Foresi<fht  «fe  Fearless 

Little  &  Sharp 

Life  Insurance 

Paywell  &  Prosper 

Suspense 

Guelph  &  Co. 

Daniel  Defoe 


$ 


Amount. 


-Proof.- 


Amt.  of  D.  B.  Add'ns  $43776.75 
"  Cash  received  17252.27 
"  "  paid    109.32.92 


$77961.94 


37 

5550 

2329 

4680 

16932 

3200 

5775 

0562 

575 

225 


21 

00 
69 
00 
92 

00 
00| 

72i 
00| 

00 


3300  00 
315  50 

390G00 
195  00 

1750  00 


r'700 


00 


4950  00 
2125  00 


373 
6973 


600 


77961 


00 


94 


Differ'ce. 


65210  00 


3150  00 


306 
15660 


482 

177 
11175 


265 


00 
00 


66 

40 
75 


65 


6000  00 


102427 


46 


•J* 


(90) 


(91) 


fill 


■     J 


H*  I 


.  I 


PARTNERSHIP  SET. 


THE    BOOKS    OF 

COMER    &    CO. 

George  N.  Comer, 
George  C.  Natlor,  Charles  C.  ErELYir. 


Boston,  1st  April,  18 — . 

I  have  this  day  associated  with  me,  in  copartnership,  Mr.  Grcorge  C.  Naylor 
and  Mr.  Charles  C.  Evelyn,  under  the  name  or  firm  of  Comer  &  Co.,  for  the 
purpose  of  carrying  on  the  business  heretofore  conducted  by  myself.  The 
company  is  to  take  my  assets  (excepting  life  assurance)  as  good  for  their  face, 
and  to  assume  and  pay  the  debts  shown  on  ray  books.  The  profit  or  loss  is  to 
be  shared  pro  rata  to  the  amount  of  capital  each  has  in  the  concern.  An 
Interest  account  between  the  partners  is  to  be  adjusted  previously  to  any 
division  of  profit  or  loss.    See  articles  of  copartnership. 

George  C.  Naylor  has  contributed  in  merchandise  $20,000.00. 

Charles  C.  Evelyn  has  contributed  in  cash  $15,000.00. 

(92) 


PAETNERSHIP  SET. 
Boston,  Ut  April,  18 — 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 

12 
13 
14 
15 
16 
17 


Schedule  of  Assets. 
Merchandise  per  Stock  Book 
Ship  Sultana,  our  ^tli 
Real  Estate  at  Brookline 
Real  Estate  at  Chelsea,  3  lots 
Cash,  per  Cash  Book 
Bank  of  Commerce,  on  deposit 
Bank  of  the  Republic,      " 
Bills  Receivable,  per  Bill  Book 
Fitchburg  R.  R.  Stock 
Shipment  to  St.  Thomas 
Shipment  to  London 

Schedule  of  Debts. 
Bills  Payable,  per  Bill  Book 
Vaughn  Lloyd,  Book  Account 
R.  &  H.  Parkinson       " 
George  N.  Csmer,  Net  Capital 
George  C  Naylor,   "         " 
Charles  C.  Evelyn,  *'      -  " 


,  1&-. 

Drs 

Crs. 

$ 

25700 

11000 

10506 

.3000 

00 

J, 

15260 

21 

1 

3906 

25 

6725 

23 

17463 

57 

4000 

00 

8187 

50' 

$109,702.76 

4020 

00 

12625  00 

1 

2622  48 

$15,804.31 

■"■" 

646  83 

5S,8G«.45 

20,000.00 

,15,000.00 

588(>8  45 
20000  00 
15000,00 

$10t),7G2.76 

I! 


The  opening  entries  having  been  made  and  posted, 
I  now  assume  that  the  business  progresses  in  the 
usual  way,  sufficient  examples  of  which  are  already 
sriven  in  the  other  books.  At  the  end  of  the  year,  the 
State  of  the  accounts  in  the  Ledger  is  as  follows  :  — 
George  N.  Comer  is  debited  with  $5000,  withdrawn. 
George  C.  Naylor "  "  "*  2500,  " 
Charles  C.Evelyn"       "         "       1700,         " 


There  is  a  balance  to  the  debit  of  the  following  Accts. 


Merchandise 

Cash 

Bank  of  Commerce 

Bank  of  the  Republic 

Interest 

Bills  Receivable 

Expense 

.lames  Brown  owes 

Niles  Hazen      " 


(«3) 


$31,350.00 

960.00 

29,238.00 

27,939.45 

536.00  1 
47,325.00 
5,569.00 
1,254.00 
2,345.00  } 

$146,516.45  ! 


in 


4 


BOOK-KEEPING. 


BOOK-KEEPING. 


.1  n 


•  I 


1 

6 
6 
7 
8 
19 
20 

12 
21 
15 
16 
17 


23 
1 

3 

4 

23 
22 

18 
15 

I". 

17 


Boston,  31«t  March, 

18-. 

Drs. 

CR9. 

There  is  a  balance  to  the  credit  of  the  following  Accts.  ] 

' 

Bills  Payable 

65,378.00 

Thomas  Adams 

5,700.00 

Real  Estate  at  Brookline 

^     620.00 

Real  Estate  at  Chelsea 

250.00 

$G1,&4«.00 

Upon    takin<r    stock,  the   Merchandise 

on  band 

amounts  to  $6>',317.50. 

Upon  making  up  the  Interest  Account, 

15 

George  N.  Comer                           is 

Cr. 

18 

For  Balance  of  Interest 

3102 

00- 

16 

George  C.  Naylor                         is 

Or. 

18 

For  Balance  of  Interest 

1065 

00 

17 

Charles  C.  Evelyn                        is 

Cr. 

18 

For  Balance  of  Interest 

778  00' 

4945 

00 

Boston,  Slst  March,  18 — . 
The  following  entries  to  close  the  Books  ; 

Assets  on  hand  this  day. 
Merchandise 
Cash 

Bank  of  Commerce 
Bank  of  the  Kcpublic 
Bills  Receivable 
James  Brown 
Niles  Hazen 

Debts  due  this  day. 
Bills  Payable 
Thomas  Adams 
George  N.  Comer,  Xct  Capital 
George  C.  Naylor,   "        " 
Charles  C.  Evelyn,  « 


(( 


Boston,  31«<  March,  18—. 
Profit  &  Loss 

For  Gain  on  Merchandise 
«       "      "  Real  Estate  at  Brookline 
"       "      "  Real  Estate  at  Chelsea 

Dr.: 


For  Balance  of  Expense  Account 
"     Interest 

"    George  N.  Comer's  Net  Gain 
"    George  C.  Naylor's    "      " 
"    Charles  C.  Evelyn's  ' 


(( 


55378 
5700 
70123 
22849 
17327 


171378 


62317 

960 

29238 

27939 

47325 

1254 

2345 


95  171378 


50 
00 
00 
45 
00 
00 
00 


95 


Cr. 


««5()9  00 
5481  00 

13153  30 
4284  90 
3249  30 


.30967 
520 


50 
00 


250  00 


(W) 


317.37!50:|  3173750 

I     I!    ^1 


INDEX. 


A. 


Adams,  James 


B. 

Bank  of  Commerce 
Bank  of  the  Republic 
Bills  Receivable 
Bills  Payable 
Brown,  James 


C. 


Cash 

Comer,  George  N. 


D. 


Evelyn,  Charles  C. 
Expense 

F. 


O. 


Hazen,  Niles 


Interest 


H. 


I,  J. 


21 


6 

7 

8 

12 

19 


5 
15 


17 
22 


20 


18 


Lloyd,  Vaughn 


M. 


Merchandise 


N. 

Naylor,  George  C. 


O. 


13 


R. 

Real  Estate  at  Brookline 
Real  Estate  at  Chelsea 


S. 

Ship  Sultana 
Stock,  Fitchburg  R.  R. 
Shipment  to  St.  Thomas 
Shipment  to  London 


U,V. 
IV. 

X,  Y,  Z. 


16 


P. 

Parkinson,  R.  &  H. 

14 

Profit  &  Loss 

23 

3 

4 


2 

0 

10 

11 


ii 


■  i. 


':  ! 


i 


(96) 


in 


BOOK-KEEPING. 


Dr. 

Merchandise 

• 

Cr.     ( 

:i) 

18— 

i 

18— 

t 

April  1 

On  hknd 

Dl 

25700 

Shdd 

i:ioooooo 

18— 

Bought 

j 

135650 

00 

Mar.31 

Balance  on  hand      y. 

D2 

62:317  50 

Mar.31 

PioSt  k  LoM 

D2   j 

30967 

50 
50 

X 

• 

♦. 

192317 

$ 

192317 

50 

Dr. 


PARTNERSHIP    SET. 
Bank  of  the  Republic. 


Cr.     (7) 


18— 
April  1 

Depoait 
Deposit 

$ 

Dl 

6725  23 

21214  22 

1 

18— 
Mar.31 

Balano* 

1 

D2 

$ 

27939  45 

$ 

27939,45 

27939,45 

Dr. 


18— 
April  1 


Valusd  at 


Dr. 


18— 
April  1 

!&— 
Mar.31 


Valaedat 
Profit  k 


Dr. 


Ship  Sultana. 


Dl 


11000 


001 


18— 
May   1 


D.  Smith 


Beal  Estate  at  Brookline. 


jl8— 

Dl 

10500 

00 

Sept.  1 

D2 

620 

00 

$ 

11020 

oo; 

A.  Green 


Kbal  Estate  at  Chelsea. 


C 


Cr.      (2) 


11000 


00 


Or.     (3) 


11020 


$ 


11020 


00 


00 


Cb.      (4) 


18— 

1 

18— 

1 

AprUl 

Taliud  at 

Dl 

3000 

OO 

Oct.    4 

James  Dean 

c 

3250  00 

18— 

/ 

Mar.31 

Profit  k  LoH 

D2 

250 

00 

/ 

$ 

• 

3250 

00 

1 

3250  00 

1 

Dr. 


IS— 
April  1 


BiU  Book 
R«c*iTe(l 


Dr. 


18— 
April  1 


Valued  at 


Dr. 


18— 
April  1 


Former  Account 


Bills  Receivable. 


Dl 


j    Ijis— 

17463157  !Mar.31 
29861  43' 


$    47325 'oo' 

li  II 


Balance 


Fitchburg  R.  R.  Stock. 


Caih 


Shipment  to  St.  Thomas. 


Dl 


8187  50 


18- 
July  8 


Cash 


Cr.     *"* 


D2 


$ 


47325 


47325 


00 


00 


Cr.      (9) 


4000 


00 


Cr.   (10) 


8187 


50 


iH 


h 


Dr. 


18— 
April  1 


On  hand 
Beoeired 


Cash. 


Dl 


15260 
250000 


$  265200 


21 
00 

21 


1&- 
Mar.31 


Paid 
Balanea 


(96) 


Cr.     (5) 


264300 

21 

D2 

960 

00 

f 

265260 

21 

I 

tB, 

Bank  of  Commerck. 

( 

Cr.     ( 

fi) 

18— 
Aprill 

Deposit 
Deporit 

Dl 

3906 
25331 

1 
25 

75; 

ooj 

18— 
Mar.31 

Balaaee 

D2 

i 

1 

29238 

00 

,  292.38 

29238 

1 

00 

Dr. 


18— 
April  1 


Former  Account 


Dr. 


Shipment  to  London. 


Dl 


4020 


00 


18— 
July  8 


Caah 


Bills  Payable. 


D2 


55378 


$,,  55378 


18— 
April  1 


00 


(97) 


Bill  Book 
Delivered 


Cb.   (11) 


4020 


00 


Cr.  (12) 


Dl 


12625 
4275:? 


$    55378 


00 
00 

00 


HI 


i! 


I 


■s 


Dr. 


18-      I 
May  10  c»8h 


Dr. 


1^     1 
3Iayl2|CMh 


Dk. 


IS- 
IS— 
Mar.31 


CMb 

Net  CapittI 


Dr. 


IS- 
IS— 
Mar.31 


CMh 


Nat  Capul 


Dr. 


IS— 


Dr. 


BOOK-KEEPING. 
Vaughn  Lloyd. 


Cr.    (13) 


Foimer  Aoooant 


Dl 


$ 


2622  48 


R.  &  H.  Parkinson. 


Cr.    (14) 


18— 

April  1 1  Former  Aooouat 


Dl 


646  83 


George  N.  Comer. 


Cr.    (15) 


C 
D2 


::i8-    I 

5000  00  April  1  Net  c»pit»i 

I     :  18— 
/012^}  75   Mar.31   Baluieeof  iBtorett 

"      "     Profit  k  Um 


•  1  75123 


751 


Geokob  C.  Naylor. 


Dl 

D2 
D2 


5SSG8 


45 

3102  00 
13 153  i  30 

•|i  75123i75 


Cr.    (16) 


C 
D2 


2500 
2284U 


f  I  25349 


Nit  Ckjdtal 


18— 

00  April  1 

i|l8— 

90  |Mar.31,Baiuie«of  Intarect 


90, 


D2 
D2 


$ 


20000 

1065 
4281 


25349 


00 

00 
90 

90 


Charles  C.  Evelyn. 


Cr.    (17) 


1 

18—    ' 

c 

1700  00[ 

April  1 

1 

18— 

D2 

17327 

30 

Mar.31 

30 

i(    t( 

$ 

19027 

Net  C*p>t»l 

Bal«no«  of  lDt«re8t 
I'roBt  k  Lorn 


Dl 

15000 

00 

D2 

778 

00 

D2 

3249 

30 

« 

19027 

30 

Ivterest. 


Cr.   (18) 


IS— 

Mar.31 'o.N.c.o.c.N.*o.o.x. 


D2 

• 

5.'U) 
4915 

0«) 
00 

18— 
Mar.31 

5481 

Profit  k  LoH 


D2 


6481 


00 


5481  00 


(98) 


Dr. 


18-      I 

June  4  MerebuidUa 


Dr. 


18— 
July  6 


M«roh«ndiM 


Dr. 


Dr. 


18— 
Mar.31 


PARTNERSHIP   SET. 


James  Brown. 


D 


$ 


1254  00 


18— 
Mar.31 


BalaDM 


NiLES  Hazen. 


D 


18— 

Mar.31  BsOwioe 


Thomas  Adams. 


Profit  &  Loss. 


D2 


31737 


50 


18— 
Mar.31 


(») 


Cr.    (19J 


$ 


D2 


1254  m 


Cr.    (20) 


D2 


2345  00 


Cr.     (21) 


IJ^ 

Mar.31  biIum* 

D2 

•      18- 
6700  00  Sept.  4 

Merehandin 

D 

5700  00 

Dr. 

Expense. 

Cr.    (22) 

18— 

5569 

00 

18- 
Mar.31 

i^toflt  k  Lou 

D2 

1 
5569' 00 

Cr.    (23) 


D2 


31737 


50 


f 
m 


111 


BOOK-KEEPING. 


il 


! 


d 


COMMERCIAL  COMPUTATIONS. 


ACCUEACT  AND  EAPIDITT  IN  COMPUTATION  13  ONE  OF  THE  FIRST  BXQCISITE3 
IN  A  CLKKK.  —  McCulloch  on  Conunerce. 


As  a  very  important  part  of  the  bnsiness  of  the  counting  houpc  consists  in 
commercial  calculations,  the  ability,  on  the  part  of  the  mercantile  clerk,  to 
make  them  with  rapidity  and  accuracy,  is  justly  held  in  estimation.  The  value 
of  commercial  speculations  often  depends  upon  a  few  figures  ;  and  disagreea- 
ble and  unlooked-for  results  may  not  unfrequently  be  traced  not  only  to  want 
of  care,  but  to  want  of  skill  in  computing.  It  is  somewliat  surprising,  there- 
fore, thtit  fo  little  attention  should  be  paid  to  the  practical  adaptation  of  arith- 
metic to  bnsiness.  If  a  young  man  is  tolerably  well  acquainted  with  the  com- 
mon ru-es  of  addition,  subtraction,  multiplication,  aud  division,  nothiu"- 
further  i-  considered  necessary.  Such  things  as  vulgar  fractious,  decimal 
fractions  and  logarithms,  are  held  as  exclusively  belonging  to  scientific  men 
and  mechanicians. 

Some  notion  of  what  a  vulgar  fraction  is,  may  perhaps  be  acquired  from  the 
use  of  si.ch  things  as  ^,  ^,  |,  when  tigged  to  the  end  of  the  measure  of  a 
piece  of  cloth,  or  the  price  of  a  pound  of  sugar.  A  decimal  fraction,  however, 
i»  rather  a  mysterious  sort  of  thing,  and  as  to  a  logarithm,  why,  it  is  on  a  par 
with  the  Egyptian  hieroglyphics. 

Vulgar  fractions,  decimal  fractions,  and  logarithms,  although  Intimately 
connected  one  with  another,  have  their  own  peculiar  properties  aud  uses  • 
vulgar  fractions  may,  however,  be  considered  the  simplest  and  most  rudiment- 
ary form,  and  I  shall,  therefore,  commence  with  a  brief  exposition  of  them  : 
a  perfect  understanding  of  their  properties  and  uses  will  facilitate  the  acquire- 
ment of  the  others. 

A  fraction,  as  its  name  implies,  is  apart  of  some  one  thing -a  part  of  unity. 
It  IS,  therefore,  always  less  than  unity  ;  the  unity  may  be  any  thing,  a  weight, 
a  measure  a  portion  of  time  or  space,  or  any  thing  distinctly  conceived  as  a 
umtij  Thus  an  ounce,  or  any  number  of  ounces  less  than  a  pound,  is  a  frac- 
tion of  a  pound  J  a  minute,  or  any  number  of  minutes  under  sixty,  is  a  fraction 
of  an  hour ;  and  so  on. 

The  form  of  a  vulgar  fraction  consists  of  two  flffnres  placed  one  above 
another,  and  divided  by  a  horizontal  line,  the  figure  or  figures  above  this  hori- 

^°n  i  *u  ^  ?°^  ^^^"^""^  *^^  "  ««'"^^«<«^."  the  figure  or  figures  below  being 
called  the  denominator ; »  as,  4,  |,  j|,  in  which  the  upper  figures,  1,  3,  and 
15,  are  the  numerators,  and  the  lower  ones,  2,  8,  and  Ifi,  arc  the  denominators. 
In  every  vulgar  fraction  the  denominator  expresses  what  number  of  parts  the 
unity  IS  supposed  to  be  divided  into,  and  the  numerator  expresses  the  number 
of  those  parts  meant  to  be  indicjited  by  the  fraction,  so  that  th«  real  value  of 

(100) 


commi:rcul  computations. 

a  fraction  is  the  quotient  resulting  from  a  division  of  the  numerator  by  the 
denominator ;  thus,  in  the  fraction  ^,  unity  is  supposed  to  be  divided  into  two 
parts,  that  is,  1  divided  by  2 ;  |-  is  1  divided  by  3 ;  and  so  on.  If  the  numerator 
consistsof  morethanl,a8in|^,  the  same  division  is  supposed  to  be  made,  for 
the  fraction  -|  may  be  represented  by  ^  +  ^  +  |-  5  b"*  we  economize  the  use  of 
figures  by  writing  -|  at  once.  By  making  the  numerator  really  divisible  by 
the  denominator,  the  fractional  form  will  disappear  ;  thus,  suppose  i  to  repre- 
sent the  fraction  of  a  pound  sterling  ;  if  the  numerator  be  multipliea  by  20,  the 
equivalent  value  of  the  pound  in  shillings,  the  next  lower  deuomiuator,  it  be- 
comes ^-,  and  dividing  the  numerator  20  by  2,  we  get  10s.,  the  half  of  the 
pound.  Here  the  intelligent  reader  will  perceive  that  to  cjill  3^-  a  fraction  does 
not  agree  with  the  previous  definition  that  a  fraction  must  be  less  than  unity : 
strictly  speaking,  it  is  not  a  fraction ;  and  arithmeticians  have  been  obliged  to 
distinguish  it  by  the  name  of  an  improper  fraction.  It  has  the /or/?i  of  a  frac- 
tion, and  that  is  all.  The  use  of  quantities,  however,  in  this  form,  is  attended 
with  so  many  advantages,  that  if  clearly  understood  we  may  put  up  with  the 
solecism.  Let  it,  however,  be  firmly  impressed  on  the  mind,  that  all  quanti- 
ties wluitever^  having  the  fractional  for7n,  represent  the  quotient  resulting  from 
the  division  of  the  numerator  by  the  denominator  -.  the  importance  of  this  will 
be  seen  as  we  proceed. 

From  this  conception  of  a  fraction  it  follows  that,  provided  the  quotient  that 
would  result  from  the  actual  division  of  the  numerator  by  the  denominator  be 
the  same,  both  of  them  may  be  hidetiuitely  increased  or  diminished.  Thus 
i,  8  5  6  0  _|8  8  8  are  all  precisely  of  the  same  value,  viz.,  i,  or  one 
hall,  altiiough  their  numerators  and  denominators  are  so  different.  Fractions 
arc  constantly  occurring  whose  numerators  and  denominators  consist  of  num- 
bers so  large,  as  to  render  them,  so  to  speak,  cumbrous  in  practice,  but  which, 
at  the  same  time,  are  capable  of  being  reduced  to  a  much  simpler  form.  This 
will,  perhaps,  be  best  understood  by  a  reference  to  whole  numbers. 

lumbers  are  said  to  be  either />rime  numbers,  or  to  be  made  up  or  composed 
of  them.  Thus  the  numbers  2,  3,  5,  7,  11,  13,  17,  and  19,  are  prime  numbers, 
because  there  is  no  whole  number  that  will  divide  them  without  leaving  a  re- 
mainder. On  the  other  hand,  4,  6,  8,  9,  10 j  12,  14,  15,  16,  and  18,  may  be  re- 
solved into  their  elements  or  prime  numbers  by  division.  Thus  4  =  2X2,6  = 
2x3,8  =  2X2X2,10  =  2X5,  12  =  2X2X3,  14=2X7,  15  =  3X5,  16  =  2X2X2X2, 
and  18  =.3X3X2. 

The  prime  or  smaller  numbers  are  said  to  be  the  ^^  factors  "  of  the  larger  or 
composite  numbers.  Now,  suppose  any  fraction  having  a  complex  numerator 
and  denominator,  it  will  immediately  be  seen  that  all  the  prime  numbers  com- 
mon to  both  may  be  expunged  without  altering  the  value  of  the  fraction. 
Thus  the  fraction  M  may  be  resolved  into  its  elements,  thus  ;  |-|=f  x'^x^xTfxTj". 
in  which  the  2's  in  £he  numerator,  and  an  equal  number  of  them  in  tne  denom- 
inator, may  be  expunged,  leaving  the  fraction  Ty^-|^-j=|^ ;  or,  without  complete- 
ly resolving  the  fraction  into  its  ultimate  elements,  we  may  represent  ^  by 
^x\-,  and  expunging  the  4's,  we  have  |^,  as  before.  All  that  we  want  is  to  get 
numbers  that  are  common  to  the  numerator  and  denominator,  in  order  to  throw 
thom  out  of  the  fraction ;  the  larger  these  common  numbers  are,  the  more  the 
fraction  becomes  simplified. 

Sometimes  it  is  desirable  in  practice  to  increase  the  terms  of  a  fraction  ;  in 
that  case  all  that  is  necessary  is  to  multiply  both  numerator  and  denominator 
by  the  same  number.  Thus,  ^  multiplied  by  5  gives  us  |-|,  and  this  again  by 
6  gives  us  ^4^,  a  fraction  of  the  same  value  as  4  ;  for,  resolve  it  into  factors, 
and  it  becomes  ^^xf  xf '  ^^  which  the  lO's  and  S's  may  be  expunged,  leav- 
ing |. 

9*  (101) 


Itl 


BOOK-KEEPING. 


COMMERCIAL  COMPUTATIONS. 


i'ilii 


f ' 


\l  f 


ft 


If  the  numerator  of  a  vulgar  fraction  be  multipliefl  by  any  whole  number 
without,  at  the  same  time,  multiplyiug  the  denominator  by  the  same  number, 
the  value  of  the  fraction  is  obviously  increaRed.  Thus,  if  the  numerator  of 
the  fraction  |  be  multiplied  by  2,  it  becomes  J,  which  is  greater  than  4  — it  is 
double  ;  unity  in  both  is  supposed  to  be  divitied  into  eight  parts,  but  the  first 
fraction  represents  3  only  of  those  parts,  while  tlie  otlier  represents  fi  of 
the  same  parts.  On  the  other  hand,  if  the  denominator  alone  be  multiplied, 
the  fraction  is  lessened ;  thus,  if  8  in  the  fraction  |  be  multiplied  by  2,  we 
have  j8^,  which  is  only  one  half  of  |;  unity  in  one  case  bring  supposed  to  be 
divided  into  sixteen  parts,  in  the  other  into  eight  parts  only,  while  3  is  taken 
in  both  instances.  Some  curious  results  take  place  by  aiUlivg  and  subtracting 
from  the  terms  of  a  fraction,  but  they  are  of  little  practical  utility. 

The  application  of  the  common  rules  of  arithmetic  to  vulgar  fractions  wi^T 
be  easily  understood.  Thus,  to  add  two  or  more  fractions  together,  we  must 
first  reduce  them  to  the  same  denominator.  It  is  clear  that  we  could  not  adu 
together  two  such  fractions  as  |^  and  |,  without  altering  their  form  ;  but  if  we 
multiply  the  first  by  3,  we  get  y^,  and  the  second  by  5,  we  get  14,  and  by  add- 
ing together  the  numerators,  we  have  1|,  which  is  obviously  an  improper 
fraction  and  actually  dividing  19  by  15,  we  have  1^^,  consisting  of  a  whole 
number  and  a  fraction;  and  from  this  example,  it  will  be  seen  that  all  im- 
proper fractions  may  be  expressed  as  a  mixed  number,  consisting  of  a  whole 
number  and  a  fraction  ;  and  vice  versa,  all  such  mixed  numbers  may  be  repre- 
sented as  improper  fractions.  Thus,  in  the  mixed  number  2^,  if  the  whole 
number  2  be  multiplied  by  the  denominator  of  the  fraction,  and  the  numera- 
tor added  to  the  product,  it  becomes  |- 

In  the  subtraction  of  one  fraction  from  another,  the  smaller  numerator  is 
subtracted  from  the  greater,  after  both  are  reduced  to  a  common  denominator. 
Thus,  to  subtract  |  from  f ,  we  have,  as  before,  4  =  A  a°d  i  =  |4>  and  sub- 
tracting 0  from  10,  we  have  ^l^.  5      1 5         a      1 5 

Fractions  are  multiplied  together  by  multiplying  the  numerators  together 
for  a  new  numerator,  and  the  denominators  together  for  a  new  denominator. 
Thus,  to  multiply  ^  by  ^,  we  have  |^xf  -i|  =  tV  ^^  resolving  the  8  mto  2  X4, 
and  cancelling  the  2*8. 

In  the  multiplication  of  fractions,  we  get  a  less  protluct  than  either  of  the 
separate  fractions,  which  seems  a  contradiction  in  terms.  Indeed,  it  cannot 
be  said  to  be  really  multiplication  at  all;  the  term  applies  rather  to  the  process 
used  with  the  two  terms  of  the  fraction  than  to  the  result.  The  multiplication 
of  fractions  is  in  reality  a  species  of  division,  and  conversely  the  division  of 
fractions  becomes  a  species  of  multiplication,  since  the  result  or  quotient  is 
greater  than  the  divisor  or  the  dividend. 

The  rule  usually  given,  is  to  invert  the  divisor,  and  proceed  as  in  multiplica- 
tion. Thus,  to  divide  4  hy4,  we  invert  -J-,  which  becomes  4,  which,  multiplied 
by  -|.  gives  -1^  =  3,  which  a  moment's  reflection  will  show  to  be  right,  because 
3  times  X  must  be  4.  Any  ambiguity  that  may  result  from  the  terms  used, 
and  which  are  borrowed  from  the  use  of  whole  numbers,  will  disappear  when 
t!ie  use  of  fractious  is  thoroughly  understood. 

(102) 


DECIMAL  FRACTIONS 

are  distinoTiished  from  vulgar  fractions  by  the  circumstance  of  their  denomi- 
nators being  always  10  or  multiples  of  10  — hence  the  term  decimal.  Thus 
2  2  5  ^  3^5  6  are  decimal  fractions,  but  they  are  not  in  practice  expressed 
u^thismaniM.  The  simplicity  of  the  denominator  enables  us  to  do  away  with 
it  altogether,  since  the  numerator  itself  always  indicates  the  denominator. 
The  three  fractions  above  given  are  expressed  simply  by  .2,  .25,  and  .350,  the 
dot  before  each  indicating  that  it  is  a  fraction,  and  the  number  of  integers 
pointin"-  out  the  denominator,  tchich  is  ahcays  unity  with  as  many  ciphers  as 
there  are  integers.  Thus,  .2  has  for  its  denominator  10,  .25  has  for  its  denomi- 
nator 100,  and  .356  has  for  its  denominator  1000. 

It  i8  this  doing  away  with  the  denominator  that  renders  the  decimal  fraction 
so  useful ;  for  so  long  as  the  dot  which  points  out  where  the  fractional  charac- 
ter commences  is  correctly  placed,  the  decimal  may  be  treated  in  every  respect 
like  a  whole  number  in  arithmetical  processes,  until  the  precise  value  of  the 
fraction  is  required.  . 

As  a  decimal  fraction  is  a  purely  artificial  sort  of  thing,  fractions  being  gen- 
erally presented  to  us  in  their  vulgar  form,  (except  in  cases  of  decimal  weights 
and  moneys,  as  in  this  country,  France,  and  other  places,)  the  first  step  is  to 
transform  the  vulgar  fraction,  when  necessary,   into  a  decimal  having  the 
same  value.    This  we  are  enabled  to  effect  by  multiplying  both  numerator  and 
denominator  b^  such  a  number  as  will  convert  the  latter  into  10,  or  a  multiple 
of  10     Thus  the  vulg.ir  fractions  ^  and  |  are  converted  into  the  equivalent 
decimals  of  A  and  X\,  or  .5  and  .75,  by  multiplying  the  first  by  5  and  the  sec- 
ond by  25.    Tliere  are,  however,  some  numbers  which  cannot  be  thus  brought 
Into  10,  or  any  multiple  of  10.    Take  the  fraction  |  as  an  example.    It  is  ob- 
vious that  no  multiplier  whatever  will  make  the  3  ot  the  denominator  10,  or  any 
multiple  of  10  ;  for,  if  such  a  number  could  be  found,  it  would  follow  that  10 
and  every  multiple  of  10  would  be  divisible  by  3,  which  is  impossible.    If  we 
multiply  the  fraction  by  3,  we  get  |  only ;  if  by  33,  we  get  ^ ;  if  by  333,  we 
get  A66  .  and  though  by  every  step  we  get  nearer  the  precise  number  required, 
yet,^j,^as  far  as  we  will,  we  can  never  attain  it.    By  taking  a  sulTicient  number 
of  figures,  we  can  render  the  error  so  small  that  it  becomes  iuiippre liable  in 
practice.    Thus,  if  we  should  write  .6,  we  should  introduce  an  error  of  ^^  ;  if 
we  take  .66,  we  reduce  the  error  to  ji^ ;  and  if  we  write  .«66,  we  reduce  it  to 
_  1      ;  and  so  it  constantly  diminishes  in  a  geometrical  ratio  with  every  figure 
added  to  the  numerator.    With  all  numbers  that  will  not  divide  10  and  its 
multiples,  such  as  3,  6,  7,  and  9,  we  must  use  these  approximative  numerators. 
To  convert  any  vulgar  fraction  into  a  decimal,  the  rule  is  to  divide  the  nu- 
merator by  the  denominator,  adding  ciphers,  of  course.    Thus  ^  becomes  .5 
by  dividing  10  by  2 ;  -I  becoJlies  .75  by  dividing  300  by  4.    If  it  is  necessary  to 
add  more  than  one  ciplier  in  the  first  instance,  as  many  ciphers  must  be  placed 
in  the  quotient  after  the  decimal  point  or  dot,  as  there  have  been  ciphers  used 
above  one.    Thus,  to  convert  the  iraction  ^  into  an  equivalent  decimal,  two 
ciphers  must  be  added  to  the  1  before  it  becomes  divisible  by  25  ;  the  quotient, 
therefore,  is  not  .4,  which  is  the  equivalent  decimal  of  ^^,  but  .04  or  ^^=-^j. 
The  fraction  -jA^,  for  the  same  reason,  would  be  expressed  by  .005. 

With  these  explanations  of  the  nature  of  decimal  fractions,  the  application 
of  the  common  rules  of  arithmetic  will  easily  be  understood.  Suppose  that 
we  have  occasion  to  add  together  the  mixed  numbers  2^,  4^,  (>|,  8|,  and  7-|. 
In  their  present  form,  it  would  be  necessary  to  convert  them  into  improper 
fractions,  bring  them  all  to  the  same  denominator,  and  add  together  the  nu- 

('■03) 


'9 


111 


BOOK-KEEriNO. 

merators  which  would  be  a  troublesome  process.  But  If  the  fractions  are 
converted  into  their  equivalent  decimals,  the  process  of  addition  will  in  no 
way  differ  from  that  of  whole  numbers.    Thus  :  ~ 

2\=   2.25 
4^=  4.50 
=   6.75 
=   8.6G  + 
=   7.80 
Added  together     =  29.96 
It  is  necessary  to  be  particular  in  having  all  the  decimal  points  in  one  line,  and 
ail  trie  decimals  of  the  same  value  underneath  one  another,  just  as  in  whole 
numbers  units  are  placed  under  units,  tens  under  tens,  hundreds  under  liun- 
dreds,  and  so  on  ;  for  as  the  value  of  whole  numbers  is  increased  tenfold  from 
right  to  left,  so  the  value  of  decimals  dimiuishos  in  the  same  ratio  Irom  left  to 
right.    567,  as  a  whole  number,  is  represented  by  500  +  60  +  7  ;  but  .507,  as  a 
decimal  fraction,  is  represented  by  ^5  _|_    6    _^  ^^7 

In  subtraction,  the  decimals  and  whole  numbers  being  placed  according  to 
their  value,  we  proceed  as  in  the  common  rule  j  for  instance,  to  subtract  Xi  i6 
from  540J267,  we  write  them  thus :  — 

640.267 
32.460 


507.807 
Multiplication  Is  performed  in  the  same  way  as  in  whole  numbers,  only  care 
must  be  taken  to  have  tlie  decimal  point  in  its  proper  place.    If  we  have  to 

r.      ?l^  *  o^  ""l^^'r  ^'^"°°  ^  ^^0  i'  '''^  -^*  iV'  '^^''^'^  i«  equal  to .  1 }  multiply 
^l     ^^  '^J  *"^  "^^  have  .10,  or  ^\,  which  is  ll^e  same  as  J^.,  or  .1,  as  before. 
The  rule  for  the  placing  of  the  decimal  point  is  to  have  as  many  decimals  in 
the  product  as  there  are  in  the  multiplier  and  multiplicand  to'^ether     Thus  in 
^  X  .2,  the  figures  of  the  product  .10  are  both  decimals,  there  being  two  deci- 
mals, .5  and  .2  ;  for  the  same  reason  .25  X  .5  =.125.  and  25.3  x  -•.4  =  0O.7>    If  the 
product  does  not,  on  multiplication,  contain  a  sufiicient  number  of  decimals  a 
cipher  or  ciphers,  as  may  be  necessary,  must  be  added  on  the  left  hand  side 
Thus  .2  X  .2  =  M,  not  .4  ;  ..3  X  -T  =  .09,  and  not  .9  ;  likewise  .O-J  X  .004  =  .0001"' 
In  dtvision  as  many  decimals  are  pointed  off  in  the  quotient  as  the  decimals 
of  the  dividend  exceed  those  of  the  divisor.    Thus,  to  divide  ..357  by  .7,  we  -et 
.51,  the  dividend  having  two  more  decimals  than  the  divisor.     In  like  manu'l'r 
to  divide  25.84  by  7.6,  we  get  3.4,  since  the  dividend  has  two  decimals,  uud  the 
olvlsor  one. 

LOGARITHMS. 

The  nature  of  logarithms  will  be  understood  by  a  reference  to  the  followin<r 
■erics  of  figures  :  —  " 

2       4        8        16       32       64        128        256        512        1024       2(H8        4C)96 
2^      2a      28       24       25        2«         7^  2»  2»         2^^J  2li  2U~~ 

The  first  is  a  scries  of  terms  proceeding  in  what  is  called  geometriciil  pro- 
gression, commencing  with  2,  and  each  succeeding  term  being  the  multiplica- 
tion of  the  preceding  one  by  2,  or,  in  other  words,  each  term  after  the  nr^t  is  a 
power  of  2,  the  second  term  being  the  square  of  2,  the  tliird  term  beiujf  the 
cube,  and  so  on  to  the  twelfth  power. 

In  the  second  series,  the  number  2  is  in  each  term,  with  its  correspondino- 
power,  the  actual  multipUcation  of  each  beiag  louud  iminediately  above  it  in 
the  first  series. 

(104) 


COMMERCIAL  COMPUTATIONS. 

Now,  there  are  these  remarkable  properties  belonging  to  these  series  :  the 
addition  of  the  powers  in  the  second  series  corresponds  to  multiplication  in 
the  other ;  subtraction  corresponds  to  division ;  raising  of  numbers  to  differ- 
ent powers  corresponds  to  multiplication  by  the  power  wanted  ;  and  the  ex- 
traction of  roots  corresponds  to  a  division  of  the  number  by  the  root  wanted. 
Thus,  suppose  we  have  to  multiply  64  by  16;  64  =  26,  and  m  =  2*;  add  there- 
fore these  powers  or  indices,  as  they  are  termed,  and  we  have  10.  Refer  now 
to  2i'\  and  immediately  above  it  is  found  1024,  which  is  the  multiplication  of 
CA  by  16.  Again,  to  multiply  32  by  128,  we  have  32  =  25,  and  128=2^;  the 
addition  of  the  powers  5  and  7  is  12,  which  corresponds  with  4096=. 32X128. 
Now,  suppose  we  wish  to  divide  2048  by  512 :  2048  =  2",  and  512  =  29 ;  subtract 
9  from  11  and  the  remainder  is  2,  which  corresponds  to  4=2048  divided  by  512. 

Required  now  the  sixth  power  of  4  =  22.  Multiply  the  index  2  by  6,  and  we 
iTave  12,  and  2 12 =4096  =  the  sixth  power  required. 

Again,  what  is  the  cube  root  of  512.-'  512  =  2  9.  Divide  the  9  by  the  root 
required,  3,  and  the  quotient  is  3,  which  corresponds  to  8  in  the  first  series^ 
and  which  is  the  cube  root  of  512. 

Tables  constructed  on  this  principle  for  all  numbers  sufficiently  high  for 
practical  purposes,  will  enable  us  at  once  to  dispense  with  multiplication  and 
division  as  usually  practised,  and  which  are  the  most  prolific  source  of  errors  ; 
whilst,  as  to  powers,  we  have  in  most  cases  a  very  simple  multiplier,  and  in 
the  extraction  of  roots,  as  simple  a  divisor.  These  tables  exist  in  the  common 
books  of  logarithms,  which,  however,  are  not  based  upon  the  number  2,  but 
upon  the  number  10,  a  mode  of  construction  which  has  many  practical  advan- 
tages over  any  other  number. 

Thus,  commencing  with  10,  we  have  the  series  10, 100, 1000, 10,000, 100,000, 
and  so  on,  being  a  geometrical  progression  whose  ratio  is  10,  the  indices  or 
powers  being  in  an  arithmetical  progression,  whose  difference  is  1.  Thus  lOi, 
102,  103, 10*,  105,  &c.  Hence,  as  the  index  of  10  is  1,  and  the  index  cf  100  2, 
all  numbers  betioeen  10  and  100  will  have  the  index  1  with  a  decimal  fraction 
added  to  it ;  all  numbers  between  100  and  1000  the  index  2  with  a  fraction ; 
while  all  numbers  below  10  will  have  an  index  less  than  1 ;  in  other  words,  the 
logarithm  will  consist  simply  of  a  fraction.  An  example  will  perhaps  make 
this  clear.  Suppose  we  wish  to  multiply  312  by  14.  The  logarithm  of  312, 
from  Bowditch's  tables,  is  2.49415 
and  the  logarithm  of  14  is      1.14613 

added  together  they  become  3.64028,  which  is  a  logarithm  whose  natural  num- 
ber is  found,  from  the  same  tables,  to  be  4368  =  312X14. 

The  great  advantage  of  making  10  the  base  of  the  logarithm  is,  that  the  in- 
dex is  always  known  from  the  number  of  digits  in  the  natural  number.  If  this 
last  consist  of  2  digits,  the  index  is  1 ;  if  of  3  digits,  the  index  is  2 ;  if  of  4 
digits,  the  index  is  3 ;  and  if  of  1  digit,  the  index  is  0 ;  the  index  being  always 
one  less  than  the  number  of  digits. 

These  principles  being  well  understood,  the  computation  by  logarithms 
differs  in  no  respect  from  the  common  rules,  except  that  the  addition  of  loga- 
rithms corresponds  to  the  multiplication  of  natural  numbers,  subtraction  to 
division,  multiplication  to  the  raising  of  powers,  and  division  to  the  extraction 
of  roots. 

(106) 


iS 


111 


BOOK-KEEPING. 


INTEREST. 


i 


I 


TyTEREST  is  Pimply  the  use  of  money.  For  example,  A  borrows  of  N  one 
hundred  dollars,  on  his  note  for  one  year  ;  and  at  the  end  of  the  year,  when 
A  pays  or  takes  up  his  note,  he  delivers  to  N  one  hundred  and  six  dollars.  If 
tlie  question  is  asked  of  almost  any  one  but  an  accountant,  whether  interest 
in  the  above  case  is  received  by  A  or  N,  the  answer  will  almost  invariably  be 
that  X  receives  it.  But  such  is  not  the  fact.  A  receives  the  use  of  the  money 
or  interest,  and  pays  N  six  dollars  for  the  same.  This  distinction  between  the 
use  of  money,  or  interest,  and  the  sum  paid  for  that  use,  is  of  the  first  impor- 
tance to  an  accountant,  for  it  is  only  by  comprehending-  this  subject  according 
to  its  true  meaning^,  that  he  is  enabled  to  post  intelligently  such  entries  on  his 
books  as  are  affected  by  interest.  If  a  merchant  pays  for  the  use  of  money, 
liis  books  must  show  that  he  has  received  that  use,  or  "interest,"  and  he 
places  it  to  that  side  of  his  interest  account  which  represents  interest  received ; 
and  if  he  receives  value  for  the  use  of  money,  or  "  interest,"  his  books  must 
show  that  he  has  delivered  that  use  or  interest,  and  he  places  it  to  that  side 
of  the  interest  account  which  represents  interest  delive  ed.  For  example  see 
Day  Book  entry  of  the  26th  February,  page  20. 

It  is  believed  that  the  above  explanation  will  sufficiently  illustrate  the  dif, 
ference  between  Interest  and  the  value  received  or  paid  for  it  j  and  although 
I  have  put  the  questions  by  which  I  design  to  show  the  methods  of  com- 
puting interest  in  the  usual  form,  (as  for  example,  I  say,  •'  What  is  the  interest 
of  $500  for  7  months  ? "  instead  of  saying,  "  How  much  must  be  paid  for  the 
interest  of  $500  for  7  months.'  ")  yet  I  do  this  for  convenience  sake,  and  not 
from  any  intention  to  overlook  the  true  definition  of  interest. 

WHEN  INTEREST  IS  DUE,  AND  WHEN  IT  MAT  BE  COLLECTED. 

It  is  due  on  each  item  charged  in  account  after  the  expiration  of  the  term 
of  credit  upon  which  such  item  was  sold. 

It  is  due  on  a  note  which  is  not  paid  at  maturity,  and  may  be  collected  for 
every  day  during  which  the  note  remains  unpaid,  including  the  days  of  grace, 
to  which  the  maker  would  have  been  entitled  had  he  paid  the  note  at  maturity 

It  18  due  to  each  member  of  a  firm,  and  accrues  on  the  amount  of  capital 
contributed  by  each  to  the  joint  stock,  from  the  time  it  is  advanced,  and  is  also 
due  from  each  member  of  a  firm  to  the  partnership,  on  each  sum  char<red  to 
him  from  Its  date,  unless  specifically  provided  for  to  the  contrary  in  the  arti- 
cles of  copartnership. 

It  is  due  on  the  balance  of  an  account  current,  or  the  net  proceeds  of  an 
account  sales  from  the  date  upon  which  such  balance  or  net  proceeds  is  pay*, 
ble  m  cash.  ^  ^ 

It  is  d„o  on  a  note  payable  on  demand  after  the  demand  has  ftcen  made,  if  no 
provision  has  been  made  in  the  note  for  the  payment  of  Interest. 

(106) 


INTEREST. 


It  Is  due  upon  a  claim  for  rent  from  the  time  the  rent  is  payable. 

No  part  of  the  interest  on  a  note  is  due  until  the  note  itself  is  due,  except 
where  it  is  specified  in  the  note  that  it  is  payable  annually,  semi-annually,  or 
at  some  other  fixed  time. 

COMPUTATION  OF  INTEREST. 

There  is  no  class  of  computations  to  which  a  book-keeper  is  obliged  to  devote 
BO  much  of  his  time  as  to  those  included  in  the  various  operations  under  the 
general  title  of  interest.  These  computations  are  of  more  general  application 
than  might  be  at  first  supposed,  affecting  as  they  do  the  settlement  of  accounts, 
averaging  accounts  of  sales,  making  up  accounts  current,  equalizing  terms  of 
credit,  &c.,  &c.  This  constant  demand  upon  a  book-keeper's  time,  arising 
from  a  variety  of  cases  to  which  the  computations  of  interest  are  applied,  ren- 
ders it  obvious  to  every  one  who  will  give  the  subject  any  attention,  that  a 
method  which  shall  be  easily  retained  in  the  memory,  applicable  to  all  lengths 
of  time  and  any  rate  per  cent.,  and  which  shall  yield  results  with  accuracy  and 
rapidity,  is  of  the  first  importance  to  an  accountant,  and  should  claim  the 
attention  of  every  business  man  ;  and  T  have  never  found  a  method  so  easily 
understood,  so  general  in  its  application,  or  so  rapid  in  its  results,  as  the  one 
recommended  here.  ^ 

At  six  per  cent,  per  annum,  the  interof  +  on  any  sum  for  one  year  is  x  qT  of 

that  sum,  and  for  2  months,  or  ^  of  o-io  yc.r,  it  must  be  -^-i^^  of  llie  principal. 

Again,  in  200  months  any  sniii  of  money,  at  six  i>er  cent,  per  annum,  will 

gain^an  amount  of  uiterest  equal  to  itself;  in  -^^  of  that  time,  it  must  gain  ^^j- 

as  much,  and  so  on. 

Therefore,  let  $857.03  =  the  principal ; 

and  857.03        is  the  interest  for  200  months  ; 

and    85.763      is  the  interest  lor  20  months  ; 

and     8.5763    is  the  interest  for  2  months  j 

and       ,85763  is  the  interest  for  0  days. 
These  results  are  obtained  by  simply  changing  the  position  of  the  decimal 
point.    Hence  we  derive  the  following 

Rule  for  Computing  Interest  at  6  per  cent. 

Take  JU  of  the  given  principal  for Jhe  interest  for  20  months  ;  take  y^  of 
the  given  principal  for  the  Interest  tbr  2  months  ;  take  j-^-^  of  the  given  prin- 
cipal for  the  interest  for  6  days,  and  from  the  interest  so  obtained,  compute 
for  any  other  time  required. 

Note.  The  sum  loaned  is  called  fhe  principal ;  principal  with  the  interest 
added  makes  the  amount. 


What  is  the  interest  of 
What  is  the  interest  of 
What  is  the  interest  of 
What  is  the  interest  of 


$100  for  2  months.* 

56  for  2  months.* 

5  for  2  months.* 

1250  for  5  months? 

illustration. 


Ans.  $1.00. 

Ans.  .56. 

Ans.  .05. 

Ans.  31.25. 


$12.50  =  interest  for  2  months. 


12.50  = 
6.25  = 


2 
1 


$31.25=       "  "    5 

What  is  the  Interest  of  $367.75  for  9  month*? 

(107) 


« 
it 


Ant.  $16.5&. 


ill 


ii^ 


II 


i 


BOOK-KEEPING. 
ILLUSTRATION. 

9  3.6775= interest  for  2  months. 
4 


14.7100=       " 
Half  of  2  months' interest,     1.8387=      " 


8 
1 


What  is  the  interest  of  f  150 
What  is  the  interest  of      500 
What  is  the  interest  of       67. 
What  is  the  interest  of     375 
What  is  the  interest  of    lOOO 


$16.5487=       "  «« 

for  7  months .' 
for  9  months.' 
■5  for  1  year  7  months  ? 
for  15  days  ? 
for  26  days .' 


<« 
i< 

Ans.  $5.25. 

Ans.  22.50. 

Ans.  6.44. 

Ans.  .94. 

Ans.  4.33. 


$1.00.0=  interest  for  6  days. 
4 


ILLUSTRATIOK. 


4.00.0  = 
.33.3  = 


«   24 

"     2 


<c 


$4.33.3  =       «' 


it 


26 


►  or, 


3)  10.00  =  interest  for  60  days. 


3.33  = 
1.00  = 


(( 
(i 


« 


20    " 
6    " 


$  4.33  = 


What  is  the  interest  of  $960  for  11  days  .' 
What  is  the  interest  of  25  for  19  days .' 
What  is  the  interest  of  900  for  27  days .' 
What  is  the  interest  of    386  for  25  days .' 

COMPUTING  TIME. 


'        «    26   " 

Ans.  $  1.76. 
Ans.  .08. 
Ans.  4.05. 
Ans.      1.61. 


les^tha^  Jvf  !!^''t  °^  '•^«'^°°^°S  *he  time  between  two  dates  that  are 
Z  IZ  ^  *^^'*; "  ^^  '°"°'  *^"  ""'"^''  °f  <^*y«  ^hi«h  intervene  betweon 
the  dates,  givm^f  each  month  the  exact  number  of  days  which  it  contrns 
But  this  course  is  too  tedious,  inasmuch  as  it  would  require,  in  order  that  the 
«ho  ,H  fi  Vi^"'''  "^  ""'r'"'^'  ^^'■^'^*'  *^«*  *h«  interest^on  the  g^ven  prin  ipa! 
which  th^H  ^"^P"*^^^^':^"^  y««>-.  and  of  that  interest,  the  fractional  pari 
which  the  days  represent  of  a  year  would  have  to  be  taken.  For  example  if 
It  18  desired  to  know  the  exact  interest  of  $300  from  May  Ist  to  December 
2oth,  we  should  compute  the  interest  for  1  year,  which  is  $18.  Then  count  the 
number  of  days  between  the  dates,  (not  countin-  the  day  we  start  from,  but 
counting  the  one  we  reckon  to,)  which  is  Zi8.    The  time  between  May  Ist  and 

of  $18  18  the  exact  interest  for  a38  days.    Instead  of  the  above  method  of  com- 
puting time,  business  men  adopt  the  following,  which  is  more  convenient,  and 
sufficiently  accurate.    Count  thewhole  number  of  months,  and  the  odd  davs 
rnus,  m  reckoning  from  November  20th,  1859,  to  March  6th,  1860,  we  should 
count  from  >ovember  20th  to  December  20th  as  one  month,  thence  to  January 
20th  as  two  months,  thence  to  February  20th  as  three  months,  and  the  9  days 
left  m   lebruary  and  6  days  in  March  making  15  days,  the  whole  time  is 
counted  as  3  months,  15  days.    Another  method  sometimes  adopted  is.  to 
count  the  exact  number  of  days  between  the  dates,  and  then  divide  them  into 
months  of  30  days  each.    This  course  is  objectionable,  as  it  gives  too  much 
interest,  the  excess  amounting  to  nearly  $1  in  every  $73  of  interest  obtained 
'LrH'^^T  J\l      ^-^amples  given  in  the  annexed  table,  the  computations 
are  made  by  the  three  methods  referred  to  above,  in  order  to  show  the  exact 
Interest  for  the  various  lengths  of  time,  and  the  variation  from  the  exact  in- 
terest, which  results  from  the  different  modes  of  counting  the  time. 

(106) 


INTEREST. 

The  student  is  advised  to  copy  the  amounts  and  dates,  and  make  all  the 
computations  himself,  without  reference  to  the  results  given  in  the  book,  un- 
til he  has  completed  his  own  work.  By  adopting  this  course,  he  will  become 
thoroughly  familiarized  with  the  different  modes  of  reckoning  the  time  and 
the  interest. 




II 

Int.  by 

Int.  at 

Princi- 

Time  from 

Months  and 

Exact 

Mos.  and 

30  Days 

pals. 

1859      to      1859. 

Days. 

Days. 

Interest.         Days. 

to  the  Mo. 

$375 
450 

50 
75 

April  3. 
Jan.  15. 

Sept.  1. 
July  17. 

151 

1&3 

4 
6 

29 
2 

$      9 
13 

32    $       9 
56          13 

32 
67 

$       9 

13 

45 
75 

600 

00 

Sept.  1. 

Dec.  31. 

121 

4 

11 

93          12 

00 

12 

10 

.340 

00 

May  10. 

Dec.  15. 

219 

7 

5 

12 

24          12 

18 

12 

41 

879 

20 

July    7. 

Oct.  31. 

116 

3 

24 

16 

77          16 

71 

17 

00 

50 

00 

May    1. 

Dec.  30. 

243 

7 

29 

2 

00            1 

99 

2 

03 

960 

00 

July    1. 

Dec.  31. 

1&3 

6 

28 

88          28 

80 

29 

28 

1000 

00 

June  30. 

Dec.  31. 

181 

6 

1 

30 

25'         30 

1 

17 

30 

6/ 

800 

00 

Oct.     1. 

Dec.  15. 

75 

2 

14 

9 

86           9 

87 

10 

00 

37 

00 

Jan.  15. 

Nov.  15. 

304 

10 

1 

85^1           1 

85 

1 

8/ 

368 

00 

Feb.  14. 

Oct.  31. 

259 

8 

17 

15 

67|          15 

76 

15 

89 

200 

00 

Jan.  12. 

Apr.  15. 

93 

3 

3 

3 

06j           3 

10 

3 

10 

300 

00 

May    1. 

Dec.  25. 

238 

7 

24 

11 

74|          11 

70 

11 

9U 

750 

00 

June  10. 

Nov.  10. 

153 

5 

18 

86          18 

75 

19 

13 

870 

00 

Jan.  31. 

Nov.  15. 

288 

9 

15 

41 

19,         41 

3;i 

41 

76 

360 

00 

Feb.  10. 

May  27. 

106 

3 

17 

6 

27!           6 

42 

6 

36 

75 

00 

Feb.  27. 

May  31. 

93 

3 

4 

1 

15!           1 

1 

18 

1 

16 

3000 

00 

July  3. 

Oct.  15. 

104 

3 

12 

51 

29|         51 

00 

62 

00 

480 

75 

Sept.  1. 

Dec.  31. 

121 

4 

9 

56           9 

02 

9 

/O 

750 

1 
25 

July   7. 

Dec.  15. 

161 

5 

8 

19 

86          19j70 

20 

13 

200 

00 

Feb.  15. 

July  15. 

150 

5 

4 

93           5]  00 

5 

00 

344 

60 

Mar.  10. 

Dec.  10. 

275 

9 

15 

58;         IS 

151 

.|69 

15 

/9 

1$  335 

82    $  33£ 

$  340 

48 

A  six  months'  note,  dated  either  on  the  28th,  29th,  30th,  or  31st  of  August, 
in  any  year  excepting  the  one  next  preceding  leap  year,  will  become  due,  with 
grace  added,  on  the  3d  of  March.  A  bill  of  goods  sold  on  either  of  the  days 
in  August  mentioned  above,  on  six  months'  credit,  will  become  due  on  the 
28th  of  February ;  and  in  making  up  accounts  current,  when  it  is  required  to 
reckon  the  time  forward  from  the  28th  of  February,  we  should  say  that  from 
the  28th  of  February  to  the  28th  of  March,  is  one  month,  to  the  28th  of  April 
is  two  months,  and  so  on,  and  not  say  from  the  last  of  February  to  the  last 
of  March  is  one  month,  and  to  the  last  of  April  is  two  months. 

INTEREST  AT  DIFFERENT  RATES  PER  CENT. 

Interest  may  be  computed  at  different  rates  per  cent,  by  finding  the  interest 
at  6  per  cent,  first,  and  adding  to  or  deducting  from  this  interest,  as  may  be  re- 
quired. Or  the  interest  may  be  computed  for  one  year,  by  multiplying  the  prin- 
cipal by  the  given  rate  per  cent.,  and  dividing  by  100,  which  will  always  give  the 
interest  on  any  sum,  at  any  rate  per  cent.,  for  one  year  ;  and  from  this  interest 
compute  for  any  number  of  years  or  parts  of  a  year.  Either  plan  may  be 
10  (109) 


•  i 


T.       I 


t  i 


BOOK-KEEPING. 

adopted,  as  will  be  found  most  convenient.  As  a  (general  thing,  however,  the 
latter  mode  requires  fewer  ligures.  A  careful  person  would  be  likely  to  work 
hi8  examples  by  both  methods,  and  by  this  means  obtain  proof  of  the  accu- 
racy  of  his  work. 

What  is  the  interest  on  $3703.89  for  1  year  4  months  2  days,  @  5  per  cent.  ? 

xxr^,  ^  .    x,_     .  ■^^«-   $251.97. 

What  18  the  mterest  on  $620.84  for  2  years  6  months  26  days,  @  4  per  cent.? 

^.,       .  Ans.  $(>4.49. 

W  hat  IS  the  interest  on  $4430.88  for  3  years  1  month  28  days,  s  7  per  cent. .' 

__-  Ann.   $9S0.46. 

What  is  the  interest  on  $1375  from  November  10, 1860,  to  February  25, 1,s61 
©  2  per  cent,  a  month  ■>  ^„^_  ^9,;^    ' 

To  ascertam  how  long  a  time  is  requin^d  for  a  given  principal  to  earn  a  given 
amount  of  interest.  Divide  the  interest  to  be  earned  by  the  interest  ou  the 
pnncipal  for  one  month,  and  the  quotient  wiU  be  the  number  of  mouths  and 
the  fractional  part  of  a  month  required. 

Example :  How  long  must  $385.56  be  on  interest  to  gain  $10.15,  at  6  per  cent.  ? 


2)3.8556 

1.8278=  1  mo.  Int. 


ILLUSTRATION. 

1.9278)$10.15(5m.8da.  Ans. 
9.f)390 


.5110 
x30  da.  in  a  mo. 


153300 
154224 


How  long  must  $3756.80  be  on  Interest  to  earn  $301.80,  at  6  per  cent. .» 

„      ,  1  y.  4  m.  2  da. 

How  long  must  $763.80  be  on  interest  to  earn  $124.12,  at  6  per  cent. .' 

_       ,  2  yr.  8  m.  15  da. 

How  long  must  $350.75  be  on  interest  to  earn  $18.62,  at  7  per  cent. .' 

_       ,  9  m.  3  da. 

How  long  must  $1700  be  on  hiterest  to  earn  $127.50,  at  5  per  cent.  ? 

1  yr.  6  m. 
PARTIAL  PAYMENTS  ON   PROMISSORY  NOTES. 

The  following  directions  for  casting  interest  upon  notes  where  partial  pay- 
ments have  boen  made,  is  of  so  much  importance,  and  will  be  found  so  bene- 
ficial to  the  business  man,  that  I  have  deemed  it  necessary  to  insert  it  entire. 
It  is  taken  from  the  Massachusetts  Reports,  volume  17,  page  417. 

Dean  vs.  Willia>is. 
In  casting  interest  upon  bonds,  notes,  Ac,  upon  which  partial  payments 
have  been  made,  every  payment  is  to  be  first  applied  to  keep  down  the  inter- 
est ;  but  the  interest  is  never  allowed  to  form  a  part  of  the  principal,  so  as  to 
carry  interest.  , 

By  the  Court.  —  One  of  the  methods  of  casting  interest  where  partial  pay- 
ments have  been  made  and  indorsed  on  bonds,  notes,  or  other  securities  for 
money,  is  to  calculate  the  interest  from  the  date  of  the  security,  or  the  time 
when  the  interest  is  to  commence,  to  the  time  of  the  first  payment  indorsed, 
to  add  this  to  the  principal,  and  from  the  sum  to  subtract  the  payment.  On 
this  remainder  interest  is  cast  to  trie  time  of  the  second  indorsement,  which 
te  added  to  the  remainder,  and  from  the  sum  is  subtracted  the  second  indorse- 

(110) 


INTEREST. 
„ent     In  like  manner  interest  is  cast  from  one  payment  to  another,  and  to 

interest,  which  the  law  does  not  allow   J^«;  ;«^^  ^  "^'  J^^^^^      ^own  the  in- 
^Ztt^^l^  :;•  n^v^ar i'  ^'Sr:  ptr„AJpH.c.pal  so  .. 

commenced  to  the  ^^ ''*  ^^^^  '^^^^^  precedin-  payments,  if  any,  the  interest  at 

^oitrSh  of  January,  1859,.  note  wa,  given  for  »15C«,  payable  o»  demand, 
With  interest.    There  was  paid  on  the  note, 
12th  June,  1859,    $200. 


15th  Sept.,   " 
15th  Dec.     " 
3d  Jan.,    1860, 
12th  July,    " 
31  St  Dec       " 


370. 
200. 
100. 
20. 
300 


3l8t  L>ec-       "  OVA/.  *i,«„^„.? 

Settled  10th  January,  1861.    What  amount  was  then  due 


illustration. 

$1500 

38      int.  5  mos.  2  days. 

1538 
200      iBt  payment. 

1338 

20.74  int.  3  mos.  3  days. 

i:j58.74 
370.00  2d  payment. 

988.74 
14.83  int.  3  months. 

1003.57 
200.00  3d  payment. 

803.57 
2.54  int.  19  days. 


806.11 

100.00  4th  payment. 

706.11 
42.13  int.  11  mo.  28  days. 


748.24 

320.00  5th  and  6th  payments. 


428.24 

.71  int.  10  days. 


$428.95  due  10th  January,  IMl. 
(HI) 


i   f«*i 


(I 


i  *i 


i: 


1^ 
I 


k» 


BOOK-KEEPING. 
•3000. 

James  H.  Blackie. 
_   ,  George  Hembold. 

on  the  note  at  that  date '  ««"u«ry  .iisi,  laei.    What  was  due 

Ans.  $278.18. 

CREDIT  TABLE. 


^ 


Date. 


January. 

February. 

March. 

April. 

May. 

June. 

July. 

August. 

September. 

October. 

November. 

December. 


Four  Montlu. 

May. 
June. 
July. 

August. 

September. 

October. 

November. 

December. 

January. 

February. 

March. 

April. 


Six  Months. 

July. 

August. 

September. 

October. 

November. 

December. 

January. 

February. 

March. 

April. 

May. 

June. 


Eight  Monthi. 


September. 

October. 

November. 

December. 

January. 

February. 

March. 

April. 

May. 

June. 

July. 

August. 


It  t  *JS  ^"'  """^  ""'  '■""  ""'  "'"  ---  O'^"  ^  «>«.  the  one  on  which 
It  t  Tit"'  "'*"  "'"  *"' "-  »  «■«  •->»  ^'y  of  the  week  as  that  on  whieh 
It  t  ^  '''''  ""^  ""'  '■'"  "-  '"»  -*  <"y»  '«ter  than  the  one  on  which 

ANNUAL  INTEREST. 

v'Xi:::Xl^  indrmryrcoS:d\"tr  ^':f  t  ^-^  -  ^^^  ^^^-* 

not  collected  at  that  time,  The  i^tereSp  tl  '°**,  **^  "^"^  ^"" '  ^"*  ^  '*  *« 
Original  pH„a>a?  muriot  be  ncreased  bv  anv^^HH^'""^''/"'^^'^''  ^*^  *^« 
The  amount  due  on  any  note  drawint  InL.^  f  *i°^/^  ^^'^'"'^  ^"t^'-^^*- 
paid  on  it  until  maturity,  consistfofthp^ntni^i^^^  if  nothing  has  been 
simple  interest  on  J^ iZofl^^^'^^^^S    '     '  ^^'^'^'^  interest.aad 

(112) 


INTEREST. 


COMPOUND  INTEREST. 

Compound  interest  is  the  use  of  both  principal  and  interest,  aft-^r  the  time 
when  the  simple  interest  has  become  due,  and  is  not  paid,  but  is  allowed  to  be 
added  to,  and  thus  to  increase,  the  original  principal.  Semi-annual  interest  is 
the  same  as  compound  interest,  except  that  it  is  computed  by  half  yearly  in- 
stead of  yearly  rests.  A  man  may  receive  compound  interest,  without  being 
liable  to  the  charge  of  usury,  provided  tlie  borrower  chooses  to  pay  compound 
interest ;  but  the  creditor  cannot  legally  collect  any  more  than  simple  interest 
on  any  note  or  debt. 

In  computing  compound  interest,  first  ascertain  the  simple  interest  on  the 
principal  to  the  time  when  the  interest  is  deemed  to  be  due ;  add  that  interest 
to  tlie  principal,  and  consider  the  amount  a  new  principal,  upon  which  simple 
interest  is  to  be  computed  till  the  termination  of  the  next  period,  and  so  on. 
The  original  principal  deducted  from  the  last  amount  will  leave  the  compound 
interest. 

What  is  the  compound  interest  of  $500  for  3  years  4  months,  at  6  per  cent, 
per  annum  ? 


Ans.  $107.42. 

ILIJJSTRATION. 

• 

Principal  for  the  1st  year, 

600 
6 

Interest  for  the  1st  year, 

30.00 

500. 

Principal  for  the  2d  year, 

530.00 
6 

Interest  for  the  2d  year, 

31.8000 

530.00 

Principal  for  the  3d  year. 

5G1.80 
6 

Interest  for  the  3d  year, 

a3.7080 

561.80 

Principal  for  the  4th  year, 

595.51 
6 

Interest  for  4th  year,  div.  by 

3 )  35.7305 

Interest  for  4  months. 

11.91 

Principal  for  4th  year. 

595.51 

Amount  for  3  years  4  mos., 

607.42 

Deduct  1st  principal, 

500.00 

Compound  interest, 


107.42 


A  young  man  receives  a  bequest  of  $800,  which  he  deposits  in  a  savings  bank 
on  the  day  that  he  is  17  years  of  age.  How  much  will  he  have  to  his  credit 
ill  the  bank  when  he  is  21  years  of  age,  provided  he  withdraws  nothing  during 
the  time,  and  the  bank  allows  him  5  per  cent,  interest  per  annum,  payable 
semi- annually  ?  Ans.  $974.72. 

10*  (113) 


i;- 


li 


->^ 


lift 


■f 


BOOK-KEEPING. 


INTEREST. 


II 


1 1*  '  i 


it 


t     « 


TABLE, 

Showing  the  Amotmt  of  £\  or  §1, /or  30   Tears,  at  5,  6,  and  7  per  cent^ 

Compound  Interest. 


Years. 

5  per  cent. 

•  6  per  cent 

7  per  cent 

1 

1.0  5  0  0  0  0 

1.060000 

1.070000 

2 

1.10  2  5  0  0 

1.12  3  6  0  0 

1.14  4  900 

3 

1.15  7  0  2  5 

1.19  10  16 

1.2  2  5  043 

4 

1.215506 

1.262477 

1.310795 

5 

1.270281 

1.338225 

1.402552 

6 

1.340095 

1.4  18  5  19 

1.500730 

7 

1.4  0  7  10  0 

1.503630 

1.605781 

8 

1.477455 

1.593848 

1.718186 

9 

1.551328 

1.689479 

1.838459 

10 

1.628894 

1.790848 

1.9  G  7  15  1 

11 

1.710339 

1.898299 

2.104852 

12 

1.795856 

2.0  12  19  7 

2.252191 

13 

1  .  8  8  5  C  4  9 

2.132928 

2.409845 

14 

1.979931 

2.260904 

2.578534 

15 

2.0  7  8  9  2  8 

2.396558 

2.759032 

16 

2.182875 

2.540352 

2.9  5  2  164 

17 

2.292018 

2.692773 

3.158815 

18 

2.4  0  6  G  1  9 

2.8  5  4  3  3  9 

3.379932 

19 

2.526950 

3.025600 

3.6  16  5  2  8 

20 

2.6  5  3  2  9  7 

3.2  0  7  13  6 

3.8  6  9  6  8  5 

21 

2.785963 

3.399564 

4.140563 

22 

2.925260 

3.G  0  3  5  3  9 

4.430403 

23 

3.071524 

3.819750 

4.740530 

21 

3.225100 

4.048935 

5.0  7  2  3  6  7 

25 

3.386355 

4.291870 

5.427434 

26 

3.555673 

4.549383 

5.807352 

27 

3.7  3  345  7 

4.8  2  2  347 

6.213868 

28 

3.920130 

,  6.111688 

6.6  4  8  8  3  8 

29 

4.116136 

5.4  18  3  8  9 

7.1  14  2  5  7 

90 

4.321943 

5.743493 

7.6  12  2  55 

By  the  use  of  the  above  table,  the  labor  of  computing  compound  interest  is 
greatly  reduced,  for  by  multiplying  the  amount  of  £l  or  $1  for  any  number 
of  years,  not  exceeding  30,  by  the  given  principal,  the  interest  is  at  once 
obtained. 

"What  is  the  compound  interest  on  $775  for  5  years,  at  7  per  cent. .' 

Ans.    $311.98. 

Amount  of  $1  for  5  years  at  7  per  cent,  by  table, 


Deduct  principal, 
(114) 


1.402552 
X775 

$1086.97778 
775. 

$311.97778 


COMrUTATIONS  OF  INTEREST  ON  STERLING  CURRENCY. 

The  lo^al  rate  of  interest  in  England  is  5  per  cent. ;  and  we  compute  Interest 
on  pounds,  shillings,  and  pence,  by  the  two  rules  given  below. 

The  first  will  give  the  exact  rosult  in  all  cases.  The  second  rule  is  a  shorter 
and  more  rapid  method,  and  although  not  so  accurate  as  the  first,  is  yet  suffi- 
ciently so  for  ordinary  purposes,  and  is  very  useful  in  making  out  accounts 

current,  averaginfr,  &c. 

Rule  1st.  Multiply  the  principal  expressed  in  pounds,  and  decimals  of  a 
pound,  by  the  rate  per  cent.,  and  divide  by  100 ;  the  result  will  be  the  interest 
for  one  year.  From  this  interest  we  compute  for  any  number  of  years  and 
parts  of  a  year  required. 

Note.  As  the  time  for  computing  interest  on  sterling  currency,  between 
two  dates,  must  be  reckoned  in  years  and  days,  and  not  in  years,  months,  and 
days,  it  is  necessary  to  get  that  fractional  part  of  a  year's  interest  for  days 
which  the  days  represent  of  a  year. 

Rule  2d.  Multiply  the  number  of  pounds  and  decimals  of  a  pound  by  the 
number  of  days,  and  divide  the  product  by  30.  The  quotient  will  be  the  answer 
in  pence,  from  which  one  penny  in  every  73  pence  must  be  deducted  to  give 
the  right  result. 

Reason  of  the  rule  :  The  rate  of  interest  being  5  per  cent,  per  annum,  a 
pound  will  earn  a  penny  a  month.  This  will  be  clearly  seen  from  the  follow- 
ing statement :  If  £5  sterling  (that  is,  100  shillings)  are  paid  for  £100  sterling 
for  one  year,  then  1  shilling  is  paid  for  £1  for  one  year,  and  1  penny  is  paid 


for  £1  for  ^  of  a  year,  or  one  month. 
Hence  it  lollowsl 


^^^ i  that  the  number  of  pounds  in  the  principal  is  equivalent  to  the 

number  of  pence  which  that  principal  will  earn  in  one  mouth.  For  example  ; 
£  100  sterling  in  one  month  will  earn  100  pence  ;  £75  sterling,  75  pence,  and  so 
on  ;  and  to  get  the  interest  for  any  number  of  days  more  or  less  than  a  month, 
it  is  only  necessary  to  multiply  by  the  number  of  days,  and  divide  by  30.  But  as 
30A  days  are  just  ^  of  a  year,  we  should  use  .30^^,^  for  a  divisor,  instead  of 
3o]  and  to  avoid  the  trouble  of  using  this  mixed  number  for  a  divisor,  we  re- 
duce the  quotient  derived  from  dividing  by  30  enough  to  give  the  same  result 
as  would  be  obtained  by  dividing  by  30^^,  which  reduction  must  be  -^^,  or  1 
penny  for  every  73  pence. 

What  is  the  interest  on  £375.14.6  for  2  years  6  months  ?      Ans.  £46.19.4. 

ILLUSTRATION. 
12|6 
20  14.5 
375.725 

5  per  cent. 


£18.78625=  1  year's  interest. 

2  years. 
£37.57250  =  2  years'  interest. 
9.30312  =  G  months'  interest. 

£46.90562 
20 


8.  19.31240 

12 

d.  3.74880 


(115) 


it 


:tl 


II 


BOOK-KEEPING. 

What  i8  the  interest  of  £CiO.  10.7  for  3  years  4  months  >  Jns     £  lo  1  9 

What  is  the  interest  of  £500.5.3  for  1  year  9  months  >  Am  '  £43  iVg* 

What  18  the  interest  on  £37.7.0  from  Ist  July  to  17th  September  ?        '    '  * 

Ans.    7  B.  6  d. 

ILLUSTRATION. 

£37.375  X. 05  =1.86875.     X78=  145.7G20- 365=  £..39935  =  7  8.  lid. 
Or  by  the  2d  Kule, 

£37.  X  78=  :J886  -T-  30  =  96.  —  1  =  95  pence,  or  7  s.  11  d. 

What  is  the  interest  on  £984.10.11  from  Ist  March  to  Ist  December .' 

Atis.  by  1st  Kule.    £.37.1.9. 

ift^  ^'^  ^  ^'"""^  ^^  September,  1859,  to  28th  December, 

^na.  by  Ist  Rule.    £5.12. 
Ans.  by  2d  Rule.    £5.12. 

A  TABLE 
Showing  the  Number  of  Days  from  any  Day  of  one  Month  to  the  same  Day 
of  any  other  Month. 


1 

From 

\  any  Day  of 

^ 

Jan. 

Feb. 

Mar. 

306 

337 

Apr. 

May 

June 

214 

245 

July 

Aug. 

Sept 

Oct 

Not. 

Jan. 

365 
31 
59 

334 

276 
300 
334 

245 

184 

153 
184 

122 

92 

61 

Feb. 

365 

28 
59 

276 

215 
243 

153 

123 

92 

Mar. 

365 

304 
335 
365 

273 

212 

181 
212 

151 

120 

Apr. 

90 

31 

365 

304 

274 

243 

182 

151 

May 

120 

89 

61 

30 

334 

304 

273 

242 
273 
303 

212 

181 

Jane 

151 
181 
212 

120 

92 

61 

31 

365 
30 
61 
91 

335 

304 
334 

243 

212 

July 

150 

181 

122 

91 
122 

61 

365 

273 

242 

Aug. 

153 

184 

92 

31 

.365 

334 

30i 

273 
301 

Sept 

243 

212 

153 

183 

123 

62 

31 

365 
30 

335 

Get 

273 

242 

214 

153 

122 
153 
183 

92 

61 
92 

365 

334 
365 

Not. 

304 

273 

245 

214 
244 

184 
214 

123 

61 
91 

31 

I>ee. 

334 

303 

275 

153 

122 

61 

30 

Dec 


The  above  table  is  very  useful  as  a  check  upon  errors  in  countino-  the  days 

from  one  date  to  another,  for  any  time  within  a  year. 
Example  :  How  many  days  are  there  from  March  4th  to  December  4th  ' 
Follow  down  the  column  which  has  March  at  the  top,  until  you  come  to  the 

line  which  has  December  at  the  side,  and  there  the  number  of  days  wiU  be 

louncl  —  2io. 

How  many  days  are  there  from  February  22  to  July  28 ' 
From  February  22d  to  July  22d  there  are  150  days,  to  which  add  the  6  days 
extra  m  July,  and  we  have  the  whole  number  — 156. 

(116) 


INTEREST. 


DISCOUNT. 

Discount  is  the  tlse  of  money  before  it  is  due.  It  is  of  the  same  nature  as 
interest,  and  differs  from  it  only  in  this  one  particular  :  that  it  is  the  use  of 
money  before  the  amount  is  due,  instead  of  the  use  of  it  after  it  is  due,  or 
after  a  given  date.  The  term  discount  has  other  meanings,  however,  than 
the  literal  one  just  given,  and  sometimes  implies  the  deduction  of  so  much 
per  cent,  from  the  face  of  the  bill,  or  the  taking  out  of  interest  on  a  promis- 
sory note  before  the  interest  has  accrued,  as  is  practised  by  the  banks.  This 
is  usually  distinguished  from  true  discount,  by  calling  it  "  Bank  Discount." 

The  method  of  computing  ttank  discount  does  not  differ  at  all  from  simple 
interest,  but  the  method  of  computing  true  discount  is  quite  different,  and 
consists  in  determining  the  difference  between  the  value  of  a  sum  of  money  due 
at  a  certain  future  time,  and  its  value  in  hand.  Thus  a  debt  of  $10G  due  a  year 
hence,  is  considered  to  be  worth  $100  to-day,  when  money  is  worth  0  per  cent, 
per  annum,  for  the  reason  that  $100  put  at  interest  to-day,  at  that  rate,  would 
anK>unt  to  $106  in  a  year.  The  difference  between  this  present  and  future 
worth  of  a  debt,  amounting  in  this  case  to  6  dollars,  is  the  measure  or  value 
of  the  discount.  In  computing  interest,  we  always  know  what  sum  is  at  in- 
terest, and  that  sum  is  always  increased  by  a  certain  per  cent,  of  itself;  but  in 
computing  discount,  we  have  to  ascertain  what  sum  must  be  at  interest,  which, 
being  increased  by  a  certain  per  cent,  of  itself,  shall  just  amount  to  the  given 
Bum  or  debt. 

For  example,  we  know  that  $1.00,  put  at  interest,  will  amount  to  $1.06  in  a 
year  ;  therefore,  to  get  the  present  value  of  any  sum  due  a  year  hence,  at  6  per 
cent.,  it  is  only  necessary  to  ascertain  how  many  times  $1.06  is  contained  in  the 
given  sum,  and  the  present  value  is  found.  If  the  debt  be  due  6  mouths  hence, 
we  find  how  much  1  dollar  will  amount  to  in  G  months,  and  divide  the  given 
sum  by  that  amount.  We  proceed  in  the  same  manner  to  ascertain  the  pres- 
ent value  of  any  sum  due  at  a  future  time,  being  particular  to  get  the  exact 
amount  of  a  dollar  at  the  given  rate,  as  nearly  as  can  be  ascertained,  for  the 
divisor,  as  a  variation  of  a  few  miUs  in  the  amount  sometimes  makes  a  great 
difference  in  the  final  result. 

What  is  the  discount  on  $307.58  due  1  yr.  6  mos.  hence,  at  6  per  cent.  ? 

ILLUSTRATION. 

367.58^1.09  =  337.23 
Amount  of  the  debt,  $367.58 
Present  value,  337.23 

Discount,  $30.35 

Proof:  $337.23  X  .09  =  $30.35  interest  for  1  year  6  months. 
337.23  +  30.35  =  367.58. 

What  is  the  discount  on  $1500,  due  6  months  hence,  at  10  per  cent,  per 
annum  ?  Ans.    $71.43. 

Suppose  I  purchase  a  bill  of  goods,  on  G  months'  credit,  amounting  to  $1500, 
but  get  5  per  cent,  off  for  immediate  payment ;  what  do  the  goods  cost  me  •• 

Ans.    $1425. 

ILLUSTRATION. 

$1500  X  .05  =  $75.    $1500  —  $75  =  $1425. 

It  will  be  seen  by  the  above  example,  that  the  difference  between  the  true 
discount  on  $1500  for  6  months  at  5  per  cent,  for  that  time,  and  5  per  cent, 
off,  is  $3.57. 

(117) 


r:f 


:1 

1 


BOOK-KEEPING. 


INTEREST. 


'U 


Note.  It  la  customary  to  make  a  deduction  from  the  face  of  stich  bills  as 
are  sold  at  the  credit  price,  when  they  are  paid  in  cash  at  the  time  of  sale,  or 
at  any  time  after  the  sale,  if  within  30  days ;  aud  such  "  deduction,"  "  per 
cent,  off,"  or  "discoun.,"  is  always  computed  as  in  the  last  example  above. 
Tliis  kind  of  discount  is  always  more  favorable  to  the  person  paying  the 
money,  than  true  discount  is. 

What  is  the  discount  on  $357.75,  due  1  year  3  months  17  days  hence,  at  5  per 
cent,  per  annum  ?  Aiis.    $21.79. 

If  the  discount  on  $1060  for  one  year,  at  6  per  cent.,  is  $G0,  how  much  is  the 
discount  on  the  same  sum  for  half  the  time,  or  6  months.'  Ans.    $30.87. 

Althou^'h  the  interest  on  $1060,  or  any  sum,  for  0  months,  is  just  half  as 
much  as  it  would  be  for  a  year,  yet  it  will  be  seen  by  the  above  example,  that 
the  discount  cannot  be  ascertained  for  parts  of  a  year  by  getting  it  for  a  whole 
year  first. 

I  buy  a  bill  of  goods  amounting  to  $2500  on  6  months'  credit,  and  can  get 
3  per  cent,  off  by  paying  cash.  "What  should  I  gain  by  paying  the  bill  now, 
provided  I  have  to  hire  the  money,  and  pay  6  per  cent,  a  year  for  it  ? 

Jnfi.    $53.75. 

What  would  be  received  on  a  note  of  $300  at  60  days,  if  discounted  at  a  bank 
at  G  per  cent,  a  year .'  Am.    $296.85. 

Suggestion  :  Compute  the  interest  on  the  note  for  the  time  it  has  to  run, 
and  three  days'  grace,  and  deduct  the  interest  from  the  face  of  the  note. 

What  is  the  bank  discount  on  a  4  months'  note  of  $1500, -at  7  per  cent,  a 
year?  Ans.    .$3.i..S74. 

On  the  1st  of  January,  1860, 1  received  a  note  for  $1875.50  at  VO  days,  and 
had  it  discounted  at  a  bank  on  the  15th  of  the  same  month.    How  muoa  did  I 


realize  upon  it : 


Ans.    $1^5>'.81. 


What  should  I  have  realized  upon  the  same  note  for  the  same  time,  co  nput- 
ing  by  the  true  method  of  discount  ?  Ans.    $185 1.  ]3. 

To  determine  the  amount  for  which  a  note  must  be  given,  in  order  that  it 
shall  produce  a  given  sum  when  discounted  at  a  bank,  — 

Get  the  bank  discount  on  1  dollar  for  the  given  time  and  rate.  Deduct 
this  discount  from  a  dollar,  and  divide  the  desired  amount  by  the  remainder. 
The  quotient  will  be  the  face  of  the  note  required. 

I  wish  to  obtain  $1000  on  a  note  at  60  days  ;  what  is  the  face  of  a  not«  that 
will  yield  that  sum,  if  discounted  at  a  bank  at  6  per  cent.  I      Ans.    $1010.61. 

ILLUSTRATION. 
$1.00— .0105  =.9895.    $1000  H- .9895  =  $1010.61. 

For  what  amount  must  a  note  bo  given,  having  4  months  to  run,  that  shall 
produce  $  .950,  if  discounted  at  7  per  cent. .'  Ans.    $1997.78. 

Per  cent,  signifies  by  the  hundred.  In  making  computations  in  which  per- 
centage is  considered,  it  is  always  understood  that  the  rate  mentioned  means 
so  many  hundredths  of  the  sum  upon  which  the  percentage  is  reckoned. 
Thus,  10  per  cent,  of  100  is  10,  or  ^^^  of  100 ;  aO  per  cent,  of  50  is  5,  or  *IX  of 
60,  and  so  on  with  any  number. 

What  is  7i  per  cent,  of  950  ?  Ans.    71^. 

What  is  50  per  cent,  of  30 .'  Ans.    15. 

if  I  buy  a  bill  of  goods  amounting  to  $375,  and  sell  them  so  that  they  pro- 
dace  a  profit  of  20  per  cent,  on  the  cost,  how  much  must  1  get  for  them .' 

Ans.    $450. 

(118) 


What  win  an  invoice  of  goods,  amounting  to  $8000,  sell  for,  provided  33J 
per  cent,  profit  is  realized  on  the  cost  ?  Ans.    $10066.661. 

TO  ASCERTAIN  THE  PER  CENT.  OF  PROFIT  OR  LOSS. 

Make  a  common  fraction  by  writing  the  gain  or  loss  for  a  numerator,  and 
the  cost  of  the  article  for  a  denominator.    Then  change  it  to  a  decimal . 

What  per  cent,  is  gained  in  buying  molasses  at  20  cents  a  gallon,  and  selling 
it  for  25  cents  ? 

illustration. 
Gain=  5        ,    .      , 
Cost  =r20  ~  decimal  .25.    Ans. 

25  per  cent,  profit  means,  that  by  making  an  outlay  of  100  cents  we  gain  L'5 
cents.  The  proof  of  the  above  example  is  the  fact  that  there  are  5  times  20  iu 
100,  and  as  the  gain  is  5  cents  on  every  20  cents  expended,  the  gain  on  100 
must  be  5  times  5,  or  25. 

I  buy  cotton  at  10  cents  a  yard,  and  sell  it  for  12^  cents ;  what  is  the  per 
cent,  of  profit?  A7is.    25. 

What  per  cent,  is  gained  by  purchasing  flour  at  $7  per  barrel,  and  selling 
it  for  $7.50.  Ans.    7-f-. 

What  per  cent,  would  be  gdned  by  purchasing  a  lot  of  coffee,  at  auction, 
amounting  to  3800  pounds,  at  5^  cents  a  pound,  and  selling  it  at  retail  at  such 
a  price  per  pound  as  to  produce  $627  ?  Avs.    200. 

I  send  my  agent  $3000  to  invest  in  wool,  and  am  to  pay  him  a  commission 
of  2  per  cent,  on  the  amount  invested  by  him,  that  is,  the  sum  which  he  pays 
for  the  wool,  and  his  commission  of  2  per  cent,  on  that  sum  must  amount  to 
just  $3000.    What  does  his  commission  amount  to  ?  Ans.    $58.82. 

Suggestion  :  If  I  am  to  pay  2  per  cent,  on  the  amount  invested  by  him,  he 
must  expend  100  cents  for  every  102  which  he  receives  from  me,  reserving  2 
cents  of  the  102  for  his  services. 

If  I  buy  a  lot  of  flour  for  10  per  cent,  less  than  its  value,  and  sell  it  for  10 
per  cent,  more  than  its  value,  what  do  I  gain  per  cout. .'  Ans.    22^. 

Suppose  it  is  desired  to  take  out  a  policy  of  insurance  on  property  valued  at 
$7500,  when  the  premium  is  2  per  cent.,  for  an  amount  sufficiently  large  to  cover 
the  value  of  the  property  and  the  premium  paid  j  for  what  sum  must  the  pol- 
icy be  made  out  ?  Ans.    $7653.06. 

Suggestion  :  It  is  clear,  that  if  I  take  out  a  policy  for  100  cents,  and  pay  a 
premium  of  2  per  cent.,  I  am  benefited,  in  case  of  loss,  only  98  cents  on  the 
dollar ;  therefore  I  must  take  out  a  policy  for  100  cents  on  every  98  cents 
which  I  wish  to  secure. 

Suppose  a  quantity  of  goods  to  cost  $75,  and  a  profit  of  $25  is  required  ;  it  ia 
plain  that  the  $25  must  be  added  to  the  $75,  and  the  goods  are  sold  for  $100. 

Therefore,  to  produce  a  profit  of  25  per  cent,  on  the  sales,  one  third  of  the 
cost  must  be  added  to  itself. 

From  this  simple  illustration  we  derive  a  universal  rule,  by  which  we  can 
determine  what  fractional  part  of  the  first  cost  of  goods  must  be  added  to  the 
cost  to  produce  a  given  profit  per  cent,  on  the  sales. 

Rule.  Make  the  required  pei;  cent,  the  numerator,  and  100  minus'thG  rate 
per  cent,  the  denominator ;  tliis  fraction  will  express  the  part  of  the  cost 
which  must  be  added  to  the  cost. 

To  make  a  profit  of         ^^,  ^^o^,  ^1^,  ^2^,  ^^,  ,^„  ,^5_^,  ^1^,  ^O^,  ^6^, 

on  the  sales,  add  ^,  lo,  1|,  |a,  ||,  |P_,  |5,  la,  ||,  |0, 

or  the  equivalent  fract's,  ^,  ^,  ^\,  \,  ^,  f  ^\,  f ,  ^\,  j. 

(119) 


BOOK-KEEPING. 


INTEREST. 


To  make  a  profit  of  10  per  cent,  on  the  cost,  X  of  the  cost  must  be 

«nt.  on  tlie  sales,  i  of  the  cost 


added  to 
cost  must  be 


%  ^ 


itself;  but  to  make  a  profit  of  10  per  cent 
added  to  itself. 

A.  buys  a  bill  of  {^oods  for  $100  with  20  per  cent,  off;  B.  buys  a  similar  lot 
for  the  same  amount  with  .30  per  cent,  off;  for  the  goods  A.  pays  $80,  and  B. 
$70.  The  question  is,  How  much  per  cent,  cheaper  does  B.  buy  his  goods  than 
A.?  that  is,  how  much  per  cent,  less  is  70  than  80 ;  and  we  must  therefore 
measure  the  difference  by  the  larger  sum.  $10,  the  difference,  is  4  of  80  ;  it  is 
I  less,  which  is  12^  per  cent.    B.  therefore  buys  his  12^  per  cent,  less  than  A. 

If,  however,  the  question  had  been  reversed,  and  placed  thus  —  How  much 
per  cent,  dearer  did  A.  pay  for  his  goods  than  B. .'  in  that  case  it  would  be 
by  the  smaller  sum  that  the  difference  should  be  measured,  and  we  must 
determine  how  much  per  cent,  more  80  is  than  70.  The  difference,  10,  is  i 
of  70  =  14l-  per  cent.  ' 

In  this  supposed  transaction,  therefore,  B.  purchases  his  goods  124  per 
cent,  lower  than  A.,  but  A.  paid  14^  per  cent,  hit/her  than  B. 

In  measuring  the  difference  of 'sums  or  quantities,  by  percentage,  it  is 
important  to  bear  this  distinction  clearly  in  mind  — that  it  makes  all  the  dif- 
ference whether  we  compare  the  larger  with  the  smaller  amount,  or  the 
smaller  with  the  larger  amount. 

Suppose  A.  and  B.  hold  railroad  stock ;  A,  paid  $100  per  share,  and  B. 
bought  the  same  at  $50  a  share.  The  price  that  A.  paid  was  double  that 
which  B.  paid  ;  consequently  100  per  cent,  dearer ;  the  price  that  B.  paid  was 
^  of  that  which  A.  paid  ;  therefore,  50  per  cent,  cheaper. 

PERCENTAGE  APPLIED  TO  STOCKS. 

Suppose  railroad  stock  sells  for  $80  a  share  one  month,  and  rises  to  $95  a 
■hare  the  next  month ;  what  is  the  per  cent,  of  advance  iu  the  price .' 

An*.    18f. 
Suggestion  :  As  80  is  to  15,  so  is  100  to  the  required  per  cent. 
Suppose  railroad  stock  sells  for  $95  a  share  one  month,  and  falls  to  $80  a 
share  the  next  month  ;  what  is  the  per  cent,  of  depredation  in  its  value .' 

Ans.    15l|. 
Suppose  I  buy  Green  River  Railroad  bonds,  that  pay  6  per  cent,  per  annum, 
for  96  cents  on  the  dollar ;  what  rate  per  cent,  do  I  realize  on  my  investment .' 

Ans.    6l. 

Suggestion  :  As  96  is  to  6,  so  is  100  to  the  required  rate. 

I  buy  United  States  5  per  cents  at  95 ;  what  rate  per  cent,  does  my  invest- 
ment pay.'  ^„5     5J5 

Suggestion  :  As  95  is  to  5,  so  is  100  to  the  required  rate.  ^^ 

I  buy  10  shares  of  City  Gas  Co.'s  stock,  the  par  value  of  which  is  $100  per 
share,  for  $1250,  and  it  pays  a  yearly  dividend  of  8  per  cent.  What  per  ccut. 
do  I  realize  on  my  investment  ?  Ans.    6%. 

Suggestion  :  As  125  is  to  8,  so  is  100  to  the  per  cent,  required. 

If  G  per  cent,  bonds  can  be  bought  for  .97,  and  Schuylkill  Mining  Co.'s  stock 
that  pays  5  per  cent,  can  be  bought  for  .&3,  which  is  the  best  investment  ? 

Ans.    €t  per  cent,  bonds. 

Suggestion  :  Ascertain  what  per  cent,  is  realized  on  each  investment,  as  in 
the  previous  examples,  and  the  most  profitable  will  then  show  for  itself. 

From  which  would  a  capitalist  realize  the  greater  income,  by  investing 
in  G^  per  cent,  stocks  at  95,  or  in  7  per  cent,  stocks  at  97  .' 

Ans.     7  per  cents  by  about  1  of  1  per  cent. 

What  Income  would  be  derived  from  uivcBting  $12,000  in  6  per  cent,  stocks 
■*90.'  jins.    $800. 

(120) 


^ 


Suggestion  :  Ascertain  first  what  per  cent.  $\  yields,  if  90  cents  yield  6. 
Then  say,  As  $1  is  to  the  per  ceut.  which  $1  yields,  .^o  is  $!2,l)00  to  the  amount 
of  income. 

A  capitalist  having  ay  opportunity  to  buy  7  per  cent,  city  scrip,  at  9>i,  desires 
to  invest  enough  of  his  capital  to  produce  him  an  income  of  $20W  per  annum. 
What  sum  is  required  ?  Ans.    635,000. 

Sugg;-tio.i :  Ascertain  what  per  cent,  the  investment  pays,  in  the  first  place. 
Tlnni  say.  As  the  per  cent,  is  to  $1,  so  is  $25(K)  to  the  sum  to  be  invested. 

I  desire  to  invest  in  stocks  that  pay  5  per  cent,  interest  per  annum,  at  such 
a  price  that  I  shall  realize  7^  per  cent,  on  my  investment.  At  what  rate  must 
I  purchase.'  Ans.    .977,  nearly. 

Suggestion  :  Ascertain,  first,  how  much  one  share  of  stock  will  amount  to 
in  one  year  at  the  giren  rate  of  interest ;  then  find  what  sum  put  at  interest 
to-day  at  the  required  rate  will  amount  to  the  same  sum  as  the  stock  will 
protluce. 

ILLUSTRATION.     1.05  ^  1.075  =  9707  +.    Ans. 

On  the  14th  July,  1860,  A.  purchases  10  bonds,  each  $1000,  dated  2.3d  June, 
18G0,  payable  in  5  years  from  their  date,  with  interest  at  10  per  cent,  per 
annum,  payable  semiannually  from  their  date,  (which  interest  he  intends  to 
reinvest  at  the  same  rate,  upon  receipt  of  each  payment,)  and  agrees  to  pay 
such  a  price  for  them  that  his  investment  shall  produce  him  at  the  rate  of  12 
per  cent,  compound  interest  per  annum,  payable  semiannually.  What  sum 
does  he  pay  for  the  bonds  at  the  date  of  the  purchase .'  Ans.    $9156.24. 

In  such  a  case  as  the  above,  it  is  necessary  to  find  what  amount  the  bonds 
will  produce  iu  5  years,  computing  comi)ound  interest  at  10  per  cent,  per 
annum,  payable  semiannually.  Tlu-u  ascertain  what  siun  put  at  intereit  on 
the  14th  day  of  July,  1860,  at  12  per  ceut.  compound  interest  per  annum,  pay- 
able semiannually,  will,  in  4  years  11  months  9  days,  amount  to  the  same  sum 
as  the  bonds  will  produce  in  5  years,  which  will  be  the  price  to  be  paid. 

AVERAGING  AND  SETTLING  ACCOUNTS. 

It  is  customary  with  merchants  to  buy  and  sell  goods  on  credit ;  and  instead 
of  paying  or  collecting  the  amount  of  each  bill  at  the  expiration  of  the  terra 
of  credit  to  which  it  is  entitled,  monthly,  quarterly,  semiannual,  or  annual, 
settlements  are  made,  at  which  time  the  total  amount  of  all  the  bills  is  paid, 
thfreby  saving  an  incalculable  amount  of  time  and  labor.  It  is  possible  that, 
upon  the  day  of  settlement,  none  of  the  items  of  an  account  may  be  due  ;  or 
tliey  all  may  have  long  since  become  due;  or,  what  is  more  probable,  some  of 
them  are  not  due,  while  others  in  tlie  same  account  are  overdue  ;  and  the  pro- 
cess by  which  we  determine  the  amoqnt  due  on  an  account  at  a  given  date,  or 
the  exact  date  upon  which  the  balance  of  an  account  is  due,  or  should  be  paid, 
witliout  loss  to  either  party,  is  termed  "  averaging  an  acr'ount." 

As  interest  is  the  standard  by  wliich  business  men  measure  the  benefit  they 
derive  from  n^eiving  payment  of  a  debt  before  it  is  due,  as  well  as  the  injury 
they  sustain  from  being  obliged  to  wait  for  payment  of  a  debt  after  it  is  due, 
the  priuci])le  upon  wliich  we  proceed  in  averaging  accounts,  in  order  that 
neither  debtor  nor  creditor  shall  suffer  loss,  is  to  charge  interest  on  all  sums 
that  are  overdue,  at  a  given  time,  and  allow  or  take  off  interest  on  all  sums 
tliat  are  not  due  at  a  given  time.  Thus,  if  a  bill  of  goods  is  sold  on  the  1st  of 
FehrTiary  on  6  months'  credit,  and  another  is  sold  at  the  same  time  on  2 
months'  credit,  and  a  settlement  is  made  on  the  Ist  of  the  following  July,  it  is 
evidi^nt  that  the  first  mentioned  bill  is  entitled  to  a  deduction  of  1  month's 
mterest,  because  tlie  terra  of  credit  on  which  the  goods  were  purchased  will 
11  (121) 


t  1 


\ 


M 


1 


'I 


lit 


BOOK-KEEPING. 

not  terminate  till  the  1st  of  Au-ust,  a  month  later  than  the  day  of  settlemcMt  • 
and  the  second  bill  must  be  increased  by  the  ouiount  of  interest  it  wiUerm 
between  the  date  on  which  its  credit  terminates  and  the  day  of  settlement 

Hence,  it  will  be  seen  by  the  above  illustration,  thatneither  of  the  bills  can 
m  justice  be  paid  on  the  l.t  of  July,  without  chan-iui,.  the  orij,aual  amount 
8.mply  because  neither  of  them  was  settled  in  accordance  with  tlie  first  a^^ee 
ment     But  suppose,  instead  of  paying  each  bill  on  the  very  day  it  became'due 
or  setthng  them  both  on  the  1st  of  July,  or  on  any  other  assumed  date,  we  de 
sire  to  pay  the  amount  of  both  bills  at  such  a  time  that  ncitlier  party  shall  re- 
ceive any  interest :  all  that  is  necessary  in  such  a  case,  is  to  ascertuii  the  date 
upon  which  the  interest  on  the  sum  overdue  shnll  be  just  equal  to  the  allovv 
ance  of  interest  to  be  made  on  the  sum  not  due,  and  the  date  upon  which  debtor 
TuZT:''''^'  ^  equally  benefited  by  interest -that  is,  as  much  intere  t 
shall  be  due  to  one  as  to  the  other -is  the  one  on  which  the  balance  of  the 
account  must  be  paid. 

To  settle  accounts  in  a  proper  manner,  one  of  the  three  methods  alluded  to 
above  must  be  adopted,  viz. :  first,  to  pay  each  item  of  an  account  at  the  exact 

f  .^hl  f"""'  ''  'T,^'"''  P'^'"' '"'  ^*  *'  '*^^^'^*"  "••  ^^^-^'^  adopted,  requires  no 
further  notice;  secondly,  to  fl..M//i.  some  dat-,  and  after  computing  interest 
on  the  various  items  of  the  account  to  or  from  that  date,  increase  or  diminish 
the  balance  of  the  account  by  the  amount  of  interest  to  be  added  to  or  deducted 
from  It ;  or,  thirdly,  to  fix  upon  some  .hite  oi  payment  when  the  amount  of 
interest  on  both  the  debtor  and  cre.lit  sides  shall  be  exactly  equal 

However  hard  arithmeticians  or  otiiers  may  labor  to  convince  the  learner 
by  mtroducmg  a  great  number  of  examples,  varying  oulv  lu  minor  and  un- 
important details,  that  the  difficulty  of  compnhcuding  the  subject  of  avera- 
ging accounts  is  to  be  measured  ouly  by  their  >kill  in  making  it  appear  difficult. 
It  IS  nevertheless  true  that  what  has  been  s;ud  above,  if  properlv  understood 
comprises  all  the  directions  necessary  to  coiuprehen.l  the  i)rinciples  of  aver- 
aging any  account.  The  method  of  applying  the  principles  referred  to,  ac- 
cording to  the  various  conditions  under  which  au  account  may  be  found  will 
receive  especial  attention  Irom  time  to  time  as  we  proceed  ;  but  to  do  the  work 
m  such  a  manner,  and  j.n-sent  it  after  it  is  done  in  such  a  form,  as  to  be  intelli- 
gible without  additional  explauatiou  other  tiiau  the  statement  itself,  will  require 
practice  on  the  part  of  the  stude.it ;  and  this  ability  can  Im3  most  readily  ac- 
quired by  an  examination  aud  careful  working  of  the  examples  wliich  are 
nerealter  introduced. 

Let  us  take  the  example  on  page  121,  whore  two  bills  of  goods  are  purchased 
on  the  1st  of  February,  but  on  different  terms  of  credit.  We  will  suppose 
the^first  one  to  be  for  SlO^o,  and  eutitlM  to  a  credit  of  0  months  ;  the  second 
to  be  for  S,^,  and  entitled  to  a  creilit  of  2  months.  What  sum  will  pay  both 
bil  8  on  the  l8t  of  July  of  the  same  year  ?  With  the  directions  already  "iven, 
and  without  any  further  assistance,  a  novice  would  be  very  likely  to  cret  the 
result  according  to  the  following  operation  :  —  -^        f 

On  the  Ist  of  August  there  will  I.e  due ^iqqq 

But  as  it  is  paid  July  1st,  1  month's  interest  must  be  deducted,*  .'  *  5 

Leaving  to  be  paid  on  the  first  bill, ~$995 

On  the  1st  of  April  there  will  be  due  S"^,  and  as  Ihe'amoimt  is  not 

paid  until  the  1st  of  July,  3  months'  interest  must  be  added,  12,        812 

Total  due  on  the  Ist  July, "^^ 

An  accountant  would  present  this  example  h.  the  following  form,  which 
gives  precisely  the  same  result,  is  easily  understood,  and  combines  many  ad- 
vantages which  do  not  appear  in  the  statement  just  made.' 

C122) 


Dr. 


INTEREST. 


A.  B.  in  Account  tvitk  C.  D.    Interest  to  1st  July,  1860. 


Cr 


1800. 
Feb.  1 
"    1 
Julyl 


Goods  @  0  mos. 
Goods  "  2    " 
Balance  of  Int. 


Am'ts. 

Int. 

1860. 
Julyl 

"    1 
"    1 

1000|00 
800,00 

700 

1 

180? 1 00 

5 

12 
12 

00 
00| 

i  Am'ts.  ! 


Int.on  am't  not  due 
Balance  of  Int. 
Balance  of  Acct. 


,1807 


$  ,1807 


00 

I 

I 
00 


Int. 


00 
00 


00 


It  is  hoped  that  by  giving  attention  to  the  following  explanation  of  the 
above  statement,  any  student  of  ordinary  capacity  will  be  enabled  to  obtain  a 
clear  understanding  of  it,  and  to  work  any  other  of  the  same  kind,  no  matter 
how  many  items  it  might  contain. 

In  the  first  place  the  paper  is  ruled  so  that  the  debits  and  credits  may  appear 
as  they  do  in  tiie  account  upon  the  Ledger.  "  A.  B.  in  account  with  C  D.," 
means  that  A.  B.  is  the  party  to  whom  the  account  is  to  be  presented,  and  that 
C.  D.  is  the  merchant  from  whose  book  the  account  is  taken.  "  Interest  to  Ju- 
ly 1st,  IS»':0,"  indicates  the  date  upon  which  the  account  is  supposed  to  be 
settled,  and  to  which  interest  is  computed.  After  the  paper  is  properly  ruled 
and  headed,  tlie  dates  of  the  bills  are  placed  in  the  date  column,  the  term  of 
credit  to  which  each  is  entitled  in  the  next,  and  the  amounts  in  the  next. 
Commencing  with  the  first  bill,  we  find  that  0  mouths'  credit  from  its  date 
will  extend  to  the  1st  of  August,  and  as  it  is  settled  on  the  1st  of  July,  of 
course  1  month's  interest  is  to  be  allowed  or  deducted  from  the  face  of  the 
bill.  But  instead  of  subtracting  it  as  was  done  in  the  first  illustration,  (see 
page  122,)  the  amount  of  interest  is  placed  in  the  interest  column,  and  marked 
with  a  star,  to  indicate  that  it  must  be  carried  to  the  other  side  of  the  account, 
in  order  that  the  $1000  shall  finally  be  reduced  by  this  amount.  If  A.  B.  has 
paid  his  debt,  or  any  part  of  it,  before  it  is  due,  an  allowance  of  interest  must  be 
made  to  him  for  doing  so  ;  and  placing  the  amount  which  must  be  allowed  him 
on  the  credit  side  of  his  account,  shows,  without  any  additional  explanation, 
that  his  indebtedness  must  be  reduced  by  that  sum.  The  interest  is  placed  in 
the  Dr.  column  instead  of  being  carried  at  once  to  the  other  side,  in  order  that 
all  such  allowances  (if  there  should  be  any  more)  may  be  carried  over  in  one 
sum,  and  thus  save  much  time  and  space.  But  in  adding  the  columns  of  in- 
terest, the  items  that  are  thus  checked  are  not  to  be  added  with  those  that  are 
not  checked,  because  the  checked  items  are  not  in  their  final  proper  position. 
Such  amounts  of  interest  as  are  to  be  transferred  from  one  side  to  the  other 
are  sometimes  written  on  accounts  current  with  red  ink  ;  but  the  manner  of 
distinguishing  them  is  a  matter  of  mere  fancy.  The  second  bill  of  goods  haa 
a  credit  of  2  months,  and  will  consequently  become  due  on  the  Ist  of  April ; 
but  as  it  is  assumed  that  the  bill  is  settled  on  the  1st  of  July,  3  months' 
interest  must  be  added  to  the  original  bill.  This  interest,  amounting  to  $12, 
is  placed  in  the  interest  column  opposite  the  bill,  as  in  the  first  instance,  but 
is  not  checked  because  it  is  already  in  its  proper  place,  and  shows  that  it  must 
be  added  to  the  $s(X).  The  interest  being  all  computed,  let  us  next  see  what 
is  to  be  done  with  the  different  amounts.  It  will  be  plain  from  an  examination 
of  the  account  as  far  as  this  explanation  has  been  carried,  that  the  amount  of 
the  two  bills  (.$1800)  must  be  increased  by  $12  and  decreased  by  $5.  This  is 
done  in  the  account  by  simply  adding  the  difference  between  the  increase  and 
decrease,  $7,  to  the  $1«00,  making  the  balance  of  the  account  $1807,  precisely 
the  same  as  in  tlie  first  operation.    The  balance  of  interest  is  also  placed  on 

(123) 


I 


i- 


11 


BOOK-KEEPING. 

the  opposite  side  in  the  interest  coltimn,  in  order  that  both  eolumns  may  show 
the  sa«ie  footing.    The  balance  of  the  account  is  placed  on  the  opposite  .ide 
for  the  same  reason.    It  will  be  a  -reat  help  to  the  student,  in  all  similar  eases 
in  deciding  to  which  column  of  prindp-.ls  he  must  add  the  balance  of  interest! 
to  recollect  that  the  side  which  earns  the  mo.t  interest  is  entitled  to  the  balance 
The  advantagres  which  this  form  of  presenting  an  account  has  over  the  first 

Tnutrj^""  ?^""'°*  '  ^"*  *^''"  ''''  °^^  «**  m^"i'-^^«t .in  this  exami,lc  as  t.u-y 
would  be  m  a  longer  one,  owing  to  the  large  proportion  of  lines  oicupied  by 
the  balances  The  ongmal  amounts  of  the  bills  are  preserved  so  tlmt  they 
can  be  seen  at  a  glance,  which  is  a  great  advantage.  But  its  principal  recom 
mendafon  is,  that  ,t  needs  no  explanation  beyond  what  is  exhibited  upon  the 
face  of  It.  Any  one  who  will  make  himself  conversant  with  the  form  of  the 
account  just  stated,  could  take  any  other  account  of  a  similar  nature,  of  any 
length,  and  read  it  intelligently  ;  while  every  account  stated  in  the  crude  form 
first  given  would  require  an  explanation  for  every  line  and  amount 

Having  Illustrated  the  manner  of  settling  an  account  according  to  one  of  the 
methods  usually  adopted,  let  us  next  consider  the  other  method,  Tyhich  is  prop 
er  y  called  "  averaging  an  account ; "  that  is,  determining  upon  what  date  tlic 
balance  of  an  account  may  be  paid  without  loss  by  interest  to  either  party  :  and 
without  in  roducmg  any  other  example  than  the  one  just  noticed,  let  us  refer 
to  tliat  as  It  now  stands  all  completed,  and  we  shall  be  able  to  understand  the 
manner  of  getting  the  date  upon  which  the  balance  of  an  account  aver^es 
due  with  scarcely  any  trouble.  Is  it  not  plain,  as  A.  B.,  in  this  example  Ins 
ly^^IZT'^'  Of  July  more  than  the  original  amount  of  the  b"lK^^^ 
he  did  not  pay  as  soon  as  he  should  have  done,  and  consequently  must  suffer 

I7  which  ^o.  H  *"■'  '^fV  "'  ^^"^"'^'  "^  ''"''''''''  ^'^^  ^'>''t  P"»^-iP«l  to  earn 
!i  'n  K  ^^78  and  a  fraction  J  but  -,'3  days  is  the  nearest  time  we  can 
« %i5  r";  ^  ^°""*»°Sr  backward  23  days  from  the  1st  of  Julv,  w-  come  to 
the  Mh  of  June,  which  is  the  day  upon  which  the  $1.^  should  Im  e  been  paid 
.f  this  IS  the  nght  date,  the  interest  on  the  an.onnt  <lue  before  that  time  must 
be  just  equal  to  the  allowance  to  be  made  on  the  amount  due  after  that  tTe! 

the  Hth  T.M,  '  ^Tr  \?''  "'.'  '"'  "*'■  ^^♦^^^^'•"^ry,  $Km,  on  0  months,  if  paid  on 
the^th  June,  must  be  allowed  interest  for  1  month  '4  days  $U 

The  second  bill,  bought  on  the  1st  February,  §s.«,,  on  '2  months,  if  paid  on  the 
8th  June  must  be  charged  with  interest  2  months  7  days,  $8.93,  showrnrtUat 

wn  M  T:^  "'  °'""'^''  "^""  *'^'^'''  "«  ^'  *«  P--''^l«  to  get,  as  the  7th  or  l^h 
would  make  the  variation  in  tfie  interest  still  greater.  The  form  of  mTkin^ 
out  the  account  need  not  differ  much  from  the"  preceding,  as^^  ^  Znlf 
reference  to  the  one  below.  o>  "»  >vi"  oc  been  oy 


Dr. 


A.  B.  in  Account  tvith  C.  D,     Interest  to  1st  July,  I860.  Cr. 


isao. 

Feb.  1 

"  1 

1 

Goods  6  mos. 
Goods  4  mos. 

• 

1000 
800 

1800 

00 
00 

12 

oo» 
00 

llSfiO. 
July  1 
«    1 

Int.  on  Am't  not  due 
Balance  of  Account 
Due  by  av.  June  8, 23  ds. 
Var.  of  Interest 

* 

1800 

00 

5 
6 

00 

90 
10 

1 



OOJ 

■2 

00 

1800 

«,| 

00 

a.  H  fh"  r  H    "  !?    1  ™'''^'  '"^  *"  "  -'^""  *'"^^'  *^='t  time  should  be  used, 

a.  m  the  form  and  method  recommended  on  page  isi;  but,  if  it  is  desiredio 

(124) 


INTERIvST. 

know  at  what  time  the  balance  of  an  account  should  be  p:iid,  any  date  may  b« 
assumed  for  the  purpose  of  computing ;  but  it  is  better  lo  take  either  the  ear- 
liest or  the  latest  date  given  in  the  example,  rather  than  some  intermediate 
one  selected  at  random,  because  the  amount  of  labor  is  thus  materially  les- 
sened. Let  us  take  the  example  already  so  often  referred  to  (and  which  seems 
likely  to  be  the  means  of  proving  the  assertion  heretofore  made,  that  there  is 
no  very  great  variety  or  difficulty  in  averaging  accounts)  for  further  illustra- 
tion ;  and  taking  the  earUest  date,  viz.,  1st  of  February,  compute  interest  on 
each  bill  from  that  time  until  its  term  of  credit  expires. 

$1000    Int.  for  6  months,  $30.00 
800         «        2       "  8.00 

$1800  $38.00 

Then  ascertain  how  long  $1800  will  be  gaining  $38,  which  will  be  4  months  7 
days.    This  time  counted  forward  from  the  Ist  February,  gives  the  8th  June, 

as  before.  ,  ,     ^.„    ^  ^  ^ 

Next  take  the  latest  date  upon  which  either  of  the  bills  becomes  due,  and 
compute  interest  to  that  date.    The  Ist  of  August  is  the  latest  date. 
$1000.00  due  1st  August,  no  interest,  0.00 

800.00  due  1st  April,  interest  to  Ist  August,     16.00 


$1800.00  $16.00 

Then  ascertain  how  long  $1800  will  be  gaining  $16,  which  is  1  month  a3  days. 
This  time  counted  backward  from  the  Ist  of  August  gives  the  8th  June  as  be- 

Although  one  example  has  proved  sufficient  to  illustrate  the  manner  by 
which  airaccounts  may  be  averaged,  yet  in  order  to  fix  the  subject  thoroughly 
in  the  student's  mind,  he  should  carefully  perform  the  examples  which  follow. 

A.  owes  B.  $1000  due  March  10th,  and  $1000  due  September  22d.  What  is 
the  equated  time  of  payment  ?    Assume  the  latest  date,  and  compute  interest 

to  that  time.      ^^^^    interest  for  6  months  12  days,  $32.00 

1000  . 

$2000  $32.00 

As  it  will  take  $2000  3  months  6  days  to  earn  $32,  that  time,  counted  back 
from  Sept.  22d,  would  give  June  IGth,  and  that  is  the  equated  time.    Or  thus  : 
A.  owes  $1000  the  10th  March,       00.00 
A.  owes  $1000  the  22d  Sept.,  32.00 

$2000  will  require  3  months  G  days  to  earn  $32.00,  which  time,  counted  forward 
from  10th  March,  gives  June  IGth,  as  before. 

The  Dr.  side  of  an  account,  amounting  to  $1000,  averages  due  10th  July. 
The  Cr.  side  of  the  same  account,  amounting  to  $300,  averages  due  8th  No- 
vember.  When  is  the  balance,  $700,  due  ?  Ans.    May  19th. 

Suggestion :  Compute  interest  on  $1000  from  10th  July  to  8th  November, 
and  then  ascertain  how  long  the  balance  of  $700  will  be  earning  that  interest, 
which  time,  counted  backward  from  8th  November,  gives  the  right  date. 

The  Dr.  side  of  an  account,  amounting  to  $300,  averages  due  10th  July.  The 
Cr.  side  of  the  same  account,  amounting  to  $1000,  averages  due  8th  November. 
When  should  the  balance,  $700,  be  paid  ?  Ans.    29th  December. 

I  buy  goods  all  on  the  same  date,  but  on  various  terms  of  credit ;  as 
follows  :  — 
One  bill  of  $  375.60,  on  3  months.  One  bill  of  $1000.00,  on  6  months. 

«        "         700.00,  cash.  "        "         500.00,  on  6  months. 

"         "        1575.75,  on  8  months. 

U*  (125) 


u 


BOOK-KEEPING. 

What  is  the  average  date  of  payment,  provided  the  whole  amount  is  settled 
at  one  time  .'  Ans.    5  months  14  days. 

Suggestion  :  Compute  interest  on  each  bill  for  the  time  it  has  to  run  ;  then 
see  liow  long  will  be  required  for  the  total  amount  of  the  bills  to  earn  the 
total  amount  of  interest. 

PROOF. 

$  375.60  interest  2  months  14  days,    $  4.63 


1000.00 

(( 

700.00 

(( 

600.00 

(( 

1575.75 

i( 

10 

<( 

$  2.67 

14 

« 

19.13 

16 

(( 

1.33 

16 

(( 

19.96 

$23.76      $23.96 

There  is  some  variation  in  the  amounts  of  interest,  but  a  day  more  or  a  day 
less  in  the  average  time  will  make  more  variation  ;  consequently  5  months  14 
days  is  the  average  trme,  as  near  as  can  be  found. 

Sold  goods  as  follows  ;  all  on  the  same  date,  but  on  different  terms  of  credit. 
What  is  the  average  term  of  credit  on  all  the  bills .' 

370.90  on  6  months. 
1000.00  cash. 
8*5.00  on  8  months 
500.00  cash. 

650.00  on  4  months.  Ans.    3  months  15  days. 

What  is  the  average  date  of  the  maturity  of  all  the  following  bills .' 
$.320.00  due  April  3d,  1860. 
430.00  due  June  14th,  1800. 
0*2.00  due  July  20th,  1800. 

217.00  due  August  30th,  1800.  Ans.    25th  June,  1860. 

Sold  goods  on  different  dates,  and  on  various  terms  of  credit,  as  follows  :  — 
January  13th,  1860,  one  bill  on  6  months,       $  537.50 
January  25th,  1800,  one  bill  on  4  months,  1000.00 

March  10th,  1800,  one  bill  on  5  months,  375.75 

April  18th,  1800,  one  bill  on  8  months,  600.00 

.Tune  lOth,  1800,  one  bill  on  4  months,  307.40 

On  what  date  does  the  whole  amount  of  sales  average  due  ? 

Ans.    15th  August,  1860. 
Suggestion  :  Assume  the  latest  date  upon  which  either  of  the  bills  becomes 
due,  and  compute  interest  on  each  bill  from  the  time  it  is  due  up  to  that  dat€. 
Then  ascertain  how  long  the  total  amount  will  be  earning  the  total  amount  of 
mtercst,  and  count  that  time  backward  from  the  assumed  date. 
When  does  the  total  amount  of  the  following  bills  average  due  ? 
January  15th,  18(jO,  bill  of  $400,  on  2  months'  credit ;  February  .3d,  bill  of 
$600,  on  2  months'  crc<lit ;  February  21st,  bill  of  $800.  on  6  months'  credit ; 
April  27th,  bill  of  $200,  on  6  months'  credit.  Ans.    15th  June,  18(V). 

Suggestion  :  Assume  the  Infest  date  upon  which  either  of  the  bills  becomes 
due,  and  compute  the  interest  on  each  bill  to  that  date  ;  then  find  how  long 
the  $2000  will  be  earning  the  total  of  interest,  Avhich  time  count  backward 
from  the  latest  date.  To  prove  the  operation,  assume  the  earliest  date  upon 
which  either  of  the  bills  becomes  due,  and  compute  interest  on  each  bill  from 
that  date  till  it  is  due.  Then  find  how  long  the  $2(KX)  will  be  earning  the  total 
of  the  interest,  which  time  count  foncard  from  the  earliest  date.  Then  rule 
a  sheet  of  paper  neatly  for  an  account  current,  and  make  all  the  computations 
for  the  same  to  15th  June,  1800. 

(126) 


>!» 


INTEREST. 


Dr. 


A.  in  Account  Current  icifh  B.  to  June  15th,  1860. 


Gb. 


1800. 

Jan. 15 

Feb.  3 

"  21 

Ap.  27 


Mdse.2m.  ;  4ao|OOi3|    I 
"       2"   '  000  00  2  12 


I!  AnVts.  Ig'd     Int.   |    1800 


«       0"  ;|  800,00 
«       0"    '  200  00 


$,  200U  00 


4 1 12 


00 
20 

80* 
40* 


J'nel5 


13|20 


In.onb'snotduej 
Balance  of  Acct.  2000  00 


Ara'ts. 


$ 


2000 


00 


S  Q,    Int. 


13  20 


'13 


iO 


When  can  the  balance  of  the  following  Ledger  account  be  paid,  without  loss 
to  either  party  .'  ^»«-    ^'^^  ^^°^-'  '^'' 


Dr. 


Thomas  J.  Long. 


Ce. 


I860. 

• 

1800. 

Jan.   12 

Mdse.  4  mos. 

290 

24  March  8 

Cash 

300  00 

Mar.  10 

»       5    " 

476 

32  May  28 

Mdse.  3  mos. 

500  00 

1 

May  25 

"       3    " 

312 

14  June  13 

Cash 

450  00 

June    9 

"       3    " 

278 

50 

Balance 

113 

20 
20 

$1303 

^: 

$1363 

Su''"-estion  :  Assume  the  latest  date  upon  which  either  of  the  bills  becomes 
due,  and  compute  interest  on  each  item  to  that  date.  It  will  be  found  that  the 
smaller  side  will  earn  the  most  interest  up  to  that  time.  This  clearly  shows 
that  the  lar^-er  side  not  having  had  time  enough  to  earn  as  much  mterest  as 
the  smaller  side,  the  assumed  date  is  too  early.  Consequently  the  time  to 
whioli  the  balance  is  entitled  must  be  reckoned  foncard  from  the  assumed 
date.  To  prove  that  the  17th  November,  1801,  is  the  right  date,  make  out  an 
account  current,  computing  interest  to  that  time,  as  follows  :  — 

Thomas  J.  Long  in  Account  Current  loith  James  Merchant. 
j)R,  Interest  to  llfh  November,  1801.        '  Cr. 


1800.  I 
Jan.  12  Mdse.  4  mo. 
Mar.io]    "      5  " 
May  25!    "      3  " 
June  9'    "      3  " 
Diff.  of  Int. 


Int.  ;    1860. 

20  9l|Mar.  SiCash 

35  80  May  28j  Mdse.  3  mo. 

23  05  Junel3i  Cash 


19  87NOV.17 

!04i 


105  071 


Bal.ofAcct. 


I 


Am'ts.  I  S I  Q 
300J00  20!  9; 
500|00 
450  00 
113  20 


$  1.363  20 


14  20 


17 


Int. 


30 
36 
38 


45 
67 
55 


105,67 


N0«.  It  is  advisable  in  all  caseo.  after  havinp;  obtained  a  date  for  the  pnytneTit  of  the  balance  of  an  aoconnl.  thai 
•ome  method  of  proof  shouM  l>c  adopted  in  order  to  puard  apainst  errors,  which  are  liable  to  occur,  especially  with 
tboae  who,  from  their  want  of  busine?.  experience,  do  not  realize  the  importance  of  making  theit  ooaputttioui  witJl 
my  more  accuracy  tluui  the  usual  course  of  arithmetical  study  in  icbool  demamls. 

(127) 


r 


BOOK-KEEPING. 


INTEREST. 


I- 


II 


3> 


Q  I  S 


AS_R_h__h  8  g 


"f     CJ     Tl<     •->      « 


I  g 


o    ao    ^.    M    ®    3»" 

g*    -H    -^    «    ^    -" 


«     «     »-<     CM     W 


«i4 

05 


S     o 


II 


i 

s 


8 


*C     M     "ti     •.»<     {s.     Oi 

4  ^.  ^  '^  "    4 


_S_S__8_8  3  8      ^ 


a 
o 


3 

o 


o 

Id 


OS 


8  ^ 


s 


«Q 


'-'nn-f-^^^^ 


« 

a 

Q 


O       In 


g 


S 


o   o 


$ 


<a 

ea 

O 

CO 

?     § 

tt  S 


5  5    «    o   o    d   d    d    .  • 


'O'S'O'O'O'O'C'a 


3} 

a> 


s  5 
2  i 


O     IS.  « 


s 

00 


CO     O     O 

«    ^    ec 


(128) 


»-  s 

O-    3 

^  f 

O     O 

«    o 

■5    o 

^^ 

^^ 

T3    +^ 

to     zS 
—^    ,0 

-a    j^ 

IB    n 


u 

3 


^ 


o 

3 
♦J 
w 


o 

o 
CO 

a 
3 


I  sell  goods  as  I0II0W8,  all  on  the  let  October,  18G0 :  — 

$200  on  2  months'  credit, 
300  on  4        "  " 

400  on  0        "  " 

100  on  8        "  " 

When  does  the  total  amount  of  the  bills  average  due  ? 

Ans.    25th  February,  1861. 
What  is  the  date  of  a  5  months'  note  that  should  be  given  in  settlement  > 

Ans.    22d  September,  \HGO. 
Suggestion  :  Compute  interest  on  each  bill  from  the  1st  October,  IbCu,  for  the 
time  it  has  to  run,  then  reckon  foricard  from  the  1st  Oi  tober,the  time  required 
for  the  $1000  to  earn  the  total  amount  of  interest,  which  will  give  the  average 

date. 

As  goods  are  not  entitled  to  days  of  grace  after  the  bills  become  due,  as  notes 
arc,  it  is  necessary,  in  giving  a  note  in  settlement  of  an  account,  to  date  it  so 
that  it  will  fall  due  three  days  sooner  than  the  account  averages  due,  so  that  the 
last  day  of  grace  shall  fall  on  the  same  day  that  the  account  should  have  been 
paid  in  cash,  provided  no  note  had  been  given. 


Dr. 


James  D.  Carter  &  Son. 


Cr. 


1860. 

1860. 

Mar.  22 

Goods  on  6  mos. 

$327 

69 

April  2 

Cash 

50  00 

1 

«♦     31 

Goods  on  6  mos. 

35 

50 

May  11 

Cash 

150  00 

April  2 

Goods  on  6  mos. 

217 

G2 

June    4 

Cash 

100^00 

"       3 

Goods  on  6  mos. 

50 

10 

July  16 

Cash 

60  00 

"       7 

Goods  on  G  mos. 

56 

25 

«      18 

Cash 

150 

00 

•'     24 

Goods  on  6  mos. 

31 

25 

Oct'r  8 

Cash 

234 

26 

May  11 

Goods  on  6  mos. 

74 

00 

Nov'r  1 

Cash 

100 

00 

"     10 

Goods  on  C  mos. 

164 

35 

"     23 

Goods  on  6  moB. 

17 

00 

June    5 

Goods  on  G  mos. 

189 

81 

Dec'r  8 

Cash 

100 

00 

«'     10 

Goods  on  G  mos. 

10 

25 

Balance 

227 

43 

«      19 

Groods  on  6  mos. 

21 

87 
69 

^ 

$  1178 

$  1178 

69 

When  is  the  balance  of  the  above  account  payable  i 

Ans.    14th  July,  1861. 

Suggestion  :  Assume  the  latest  date  upon  which  either  of  the  sums  in  the 
account  becomes  due,  and  compute  interest  on  each  amount  from  the  time  its 
credit  expires  until  that  date.  Then  ascertain  how  long  a  time  will  be  re- 
quired for  the  balance  of  the  account  to  earn  the  balance  of  interest,  which 
time  must  be  counted  forward  from  the  assumed  time,  to  give  the  right 
date. 

(129) 


BOOK-KEEPING. 


INTEREST. 


)l 


fil 


i    ' 


i 


!?> 


James  D.  Carter  &  Son  in  Account  Current  with  Henry  Lane, 
DR-  '  to  Hth  January,  1801.  Cr. 


1800. 

Am'to.  sIq    Int. 

1860.  1 
Apr.  2  Cash 

Am'ts.    S 

a  lint 

Mar.2J 

Mdse.  0  mos. 

327 

09  3 

23 

6 

17 

1     50^00  9 

12 

2J.35 

«  3: 

Mdse.  6  mos. 

35 

50 

3 

15 

62iMayllCash 

'  15000 

1 

8 

3 

608 

Apr.  2 

Mdse.  Omos. 

217 

62  3 

12 

3 

70  June  4  Cash 

loo'oo 

7 

10 

367 

"     3 

Mdse.  Omos. 

50 

10  3 

11 

M  July  10  Cash 

50  00 

5 

29!  1,49 

«     7 

Mdse.  Omos. 

56 

25  3 

7 

9i: 

"    18  Cash 

150'00;  5 

27, 

4'43 

"    24Mdsc.6mo8. 

31 

252 

21 

42  Oct.    8  Cash 

2.34  2(5 

3 

6 

3^75 

May  11  Mdse.  Omos. 

74:00|  2 

3 

78  Nov.  ICash 

loo'oo 

2 

^3, 

1 

22 

"    10  Mdse.  Omos. 

Iw'.iS;    1 

29 

1 

02     "   a3  Goods  Omos. 

17  00 

4 

9 

37» 

June  5  Mdse.  0  raos. 

189  81 

1 

9 

1 

23  Dec.  8  Cash 

100  00 

1 

6 

60 

"    lOMdse.  6moB. 

10 

25 

1 

4 

06     1861. 

"    19! Mdse.  Omos. 

21 

87 

26 

09  Jan.  14  Bal.  of  Int. 

6|78 

Int.  from  Cr. 

37 

"    "  Bal.  ofAcct. 

22065 

Bal.  of  Int. 

6 

78 

^^ 

• 

1178  69 

,;^ 

59 

% 

1178  69 

23  59 

The  balance  due  on  tlic  above  account,  Hth  January,  1801,  is  shown  to  be 
$?20.65.  This  sum,  with  interest  for  0  months,  amounts  to  $227.27.  By  the 
previous  operation  it  was  found  tliat  tlie  balance  of  the  account  was  payable 
on  the  Hth  July,  1801.  Thus  it  will  be  seen,  that  one  operation  is  suffi- 
cient proof  of  the  correctness  of  the  other. 

Feb.  12th,  18—,  sold  two  bills  of  goods,  one  of  $750,  on  4  months'  credit ;  one 
of  $750,  on  0  months'  credit,  and  to  save  the  necessity  of  inquiring  into  the 
responsibility  of  the  purchaser,  received  in  payment  three  notes,  as  follows  : 
One  note  dated  February  1st,      at  0  months,  for  500, 
"      "        "      November  2()th,  at  5  montlis,  for  3(»0, 
"      "        "      November  0th,   at  4  mouths,  for  250, 
and  cash  for  the  balance.    How  much  cash  must  I  receive  in  order  to  settle 
the  account  at  the  date  of  the  sales .'  Ans.    $432.29. 

See  entry  in  D.  B.  page  (0.) 

Suggestion  :  Assume  the  latest  date  upon  which  either  of  the  amounts 
becomes  due,  and  compute  interest  on  each  sum  to  that  date.  Increase  each 
side  of  the  account  by  the  amount  of  interest  it  has  earned,  and  get  the  bal- 
ance. Then  ascertain  what  sum  put  at  interest  on  the  12th  of  February,  will 
amount  to  the  balance  at  the  assumed  date. 
The  accuracy  of  the  result  is  proved  by  the  following  account  current :  — 


M.  LovERiNG  in  Account  toith  George  N.  Comer. 
DR' Interest  to  \2th  August,  18— 


Or. 


1*- 

Mse.  4  m. 
Mse.  0  m. 
Bal.of  In.! 

/ 

Ara'ts. 

Due. 

Jel2 
Aul2 

S 

q" 

!  lot 

ll8- 

Cash 
Note  6  m. 

"     5ra. 

"     4  m. 

Am'ts. 

D«e. 

Fyl2 
Au4 
Ap29 
Mh9 

s 

6 

3 
5 

d' 

8 

14 

3 

1 

Int. 

Fyl2 

"12 

Aul2 

750 
750 

00 
00 

00 

7 

i 
17 

50 
71 

Fyl2 
"    1 

Nr26 
«♦   6 

432  29 

500  00 
300  00 

250  00 

1 

12 
5 

97 
67 
20 
37 

1 
1 

$ 

1500 

• 

25 

21 

$ 

1500  00 

1     1 

! 

I 

25 

21 

(130) 


On  the  15th  November,  1800,  — 

The  Cr.  side  of  an  account  is  $807184.61. 

The  Dr.  side  of  the  same  account  is    382898.33. 
A  f  th«t  time  the  balance  of  interest  in  favor  of  the  Dr.  side  was  $7495.72.    It 
^  proposeT^^^^^^  notes  in  settlement  of  the  balance  of  the  account,- 

One  at  4  months  for  $150,000 
One  at  5  months  for    100.000 
One  at  6  months  for    174.280.28 
When  should  each  of  the  notes  be  dated,  in  order  that  upon  payment  of  them 
all,  the  balance  of  the  account  shall  be  cancelb^d  .  ^  ^^^^^^^  ^^^^^  ^^^  ^^^^ 

5  months'  note,  Sept.  28th. 

6  months'  note,  Aug.  28th. 

»     «,♦„;«  wV.1t  fimp  is  reauired  for  the  balance  of  the  account 
Suggestion  :Asocrta^^^^^^^^  'tZ'  counted  forward  from  Novex^ber 

to  earn  the  balance  ot  inteie.  i,  wiui.u 

T^rr^t^ttfZ  t  pits,  t:'  aL-'aate  „  rVtS,  «.  account 
li'payat!    K't.ty'arroo'T  pam'at  that  ,ta.,  of  course  they  draw  iute«st 
afterwards. 
When  is  the  balance  of  the  following  account  due  f       Ans.    Ist  Oct.,  1861. 


Dr. 

1800. 
Jan'y  0 
Feb'y  2 
Apr.  13 
Aug.  29 


Ladd  &  Hudson. 


Cr. 


Merchandise 

do. 

do. 

do. 
Balance 


853 

827 

:«8 

057 
458 


3134 


40 
30 
55 
14 

08 

48 


1S;>9. 

iDec.   22 

I    1800. 

Jan'y  29 

3Iay     7 

Sept.  30 


Merchandise 

do. 
do. 
do. 


296 


74 


346138 


$ 


1174 
1310 

3134 


46 
90 

48 


The  student  is  requested  to  perform  the  above  example  by  the  following 
method,  wliich,  although  it  involves  no  new  principle,  yet  in  some  cases  -is 
Try  coivenicnl  because  by  having  an  extra  column  in  the  I-lgcr  accoun 
for  the  amounts  of  interest,  the  computations  can  b^niade,  and  the  ammxn^^ 
placed  on  the  Ledger  as  fast  as  the  charges  arc  posted,  thus  enablmg  the  book- 
keeper to  have  his  accounts  ready  for  settlement  with  comparatively  little 
delay.  Another  advantage  which  this  method  possesses,  is  the  great  lacimy 
with  which  the  time  for  computing  the  interest  is  ascertained. 

Assume  the  last  day  of  the  month  next  preceding  the  earliest  .<^«^e  in;»^ 
account,  and  compute  interest  on  each  amount  to  the  day  on  V;hich  i  s  term 
of  credit  terminates,  or  to  its  date,  if  it  has  no  credit.  Then  find  how  long 
the  balance  of  the  account  will  be  earning  the  balance  of  interest,  ^^hich  time 
counted  foj-nmrd  from  tlic  assumed  time,  if  the  largest  side  has  earned  the 
most  interest,  and  bacJcoard  from  the  assumed  time  if  the  smallest  side 
has  earned  the  most  interest,  will  give  the  date  for  the  payment  of  the  baLmce 
The  reason  for  assuming  the  date  as  recommended  above,  is  to  enable  us  to 
fix  the  time  more  readily  for  which  the  interest  is  to  be  computed.    According 

(131) 


BOOK-KEEPING. 


INTEREST. 


If 


day  of  No'v'^'mU^I^       *^'  "''"''"''^  *""'  '"^  ^^'  "''""'P^"  ^^°^  ^''  '^«  1^«* 


Dr. 


LADD  &  HUDSOX. 


Cr. 


1860. 

Merchandise 

do. 

do. 

do. 
Balance 
Balance  of  Int. 

Am'ta.  : 

Intereat. 

'  1859. 

Merchandise 

do. 
do. 
do. 

Am'ts.  r  Interest. 

Jan.    6 
Feb.  2 
Apr.  13 
Aug.29 
Oct.    1 

853  40 

82730 
a38;56| 
657jl4 

458  08' 

1 
3i34|48| 

5 

8 

7 

29 

60 
$101 

12  Dec.  22 

55    1800. 
50  Jan.  29 
40 'May  7 
Sep.  30 

290 

340 
1174 
1316 

3134 

74 

38 
46 
90 

48,' 
1 

1 

1 

3 
30 
65 

$101 

09 

41 

73 

85 

08 

08 

i^^.''?,  "  "  '-  ^r""  ^^"^  ^^'^''-'^J^  °^  November,  1859,  to  the  22d  of  December, 
18.yj,  there  are  L>2  days,  and  the  interest  for  that  time  on  the  first  item  entered 
ou  the  account  is  $1.09.  The  interest  on  the  next  item  entered,  from  the  same 
date  IS  .$;..12,  and  so  on  throu-hoiit  the  whole  of  the  account.  The  balance 
of  the  mterest  is  found  to  be  $50.45,  and  as  the  balance  of  the  account  will 
require  22  months  1  day  to  earn  the  balance  of  interest,  we  count  that  time 
forward  from  the  assumed  date,  which  brin-s  us  to  the  Ist  October,  1801.  the 
day  upon  which  the  balance  is  to  be  paid. 

Prove  the  1st  October,  1801,  to  be  the  right  date  by  making  out  an  account 
current  with  Ladd  &  Hudson  up  to  that  time.  "ccouni 


Dr. 


Ladd  &  Hudson  in  Account  Current  rtith  Wm.  Joxes. 
Interest  to  Ut  Octobery  1801. 


Cr. 


1860. 

Jan.  OMerchdae. 

Feb.  2        do. 

Ap.  13        do. 

Au.29        do. 
Balance 
Var.  of  Int. 


Am'ts. 

Time. 
20|25 

853  40 

827  30 

19 

29 

338  56 

17 

18 

657  14 

13 

2 

458 

08 

3134 

48 

~" 

$: 

Int 


88  90 

82  59 

29  79  Jan  29 

42  93 

021 
244  23^ 


1859. 
D'r22!Merchd8e. 

1860. 

do. 
3Iay  7  do. 
Sep  30        do. 


Am'ts.    Time.'    Int. 


296 

346 
1174 
1310 


$;3134 


74  21 1  9 


38  20 


40 
90 

48 


2 

24 

I 

1: 


31 


34 
98 
79 


$1244 


00 


75 
65 
23 


23 


(132) 


' 


When  is  the  balance  of  the  following  account  payabk^^  ^^^^^  ^^^^^  ^,^^^ 

Cr. 


Dr. 


Ricii^VRD  D.  Howe. 


1800. 
Jan.  19 
Feb.  7 
Mar.  9 
Apr.  24 
3ray  IG 
July  5 
Au.  24 
Oct.  9 
Nov.24 
Dec.  20 


Mdse.  6  m. 

do.    4  m. 

do.    3  m. 

do.    3  m. 
Cash 
Mdse.  4  m. 

do.    3  m. 

do.    2  ra, 
Cash 
Mdse.  2  m 


Am'ts. 


597 
389 

809 
078 
379 
083 
527 
698 
200 
705 


5791 


03 
51 

82 
70 
84 
91 
35 
54 
00 
93 

29 


Time.:  I   Int. 


19 

71 

9j 

24! 

lei 

5 
241 

9! 
24' 
20 


19 
10 
23 
23 
8 
34 
28 
39 
10 
52 


$,;250 


82 
19 
05 
08 
01 
77 
48 
47 
80 
34 

01 


1860. 
Mar.  9 
Apr.  2 
June  0 
"  23 
Au.  19  j 
Sep.  22 
Nov.17 
Dec.  28 

Dec.  31 


Am'ts. 


Cash 

Mdse.  3  m. 
Cash 
Cash 

Mdse.  2  m. 
Cash  j 

Mdse.  2  m. 
Cash  j 

Bal.of  Ac. 
Bal.oflntJ 


000,00 
470  93 
700|00 
804174 
900i00 
:i50|00 
793] 50 
315  00 


Time.     Int. 


791 


$^5791  29 


12 


o! 

23 

19 
22 

17 

28 


6 
14 
18 
24 
43 
15 
49 
18 

58 


90 
47 
20 
93 
35 
28 
86 
80 

82 


$  '250  01 


Su-crestion  :  Compute  interest  from  the  31st,December,  1859,  on  eachitem  of 
the  a^ccount,  to  its  date,  or  until  its  term  of  credit  expires,  if  it  is  entitled  to 
credit ;  and  then  ascertain  how  long  the  balance  of  the  account  will  be  earning 
the  balance  of  interest,  which  time  counted  fortoard  from  the  3 Ist  December, 
if  the  lar*-est  side  earns  the  most  interest  to  that  time,  or  backward  from  the 
31st  December,  if  the  smallest  side  earns  the  most  interest  to  that  time,  will 
ffive  the  right  date  for  the  payment  of  the  balance.  ^.  ^^  ^,     ,    , 

Instead  of  making  out  au  account  current  to  the  date  upon  which  the  balance 
is  payable,  as  we  have  previously  done  to  prove  the  work,  we  will  make  it  up  to 
the  1st  of  January,  1801,  dating  the  balance  of  the  account  ($791.12)  on  the  day 
that  it  should  be  paid  in  cash,  and  treat  it  the  same  as  we  do  any  other  item  m 
the  account  current.  If  the  interest  on  each  side  amounts  to  the  same  or  nearly 
the  same  sum,  it  is  proof  that  the  answer  to  the  preceding  example  is  correct. 

Dr.    Rich'd  D.  Howe  in  Ace.  with  James  Ross.  Int.  to  1st  Jaw.,1861.    Cr. 


1860. 
Jan.  19 
Feb.  7 
Mar.  9 
Apr.24 
May  10 
July  5 
Au.  24 
Oct.  9 
Nov.24 
Dec.  20 


Mdse.  6  m 

do.    4  m 

do. 

do. 
Cash 
Mdse 

do. 

do. 
Cash 

Mdse.  2  m 
Int.  fm.  Cr 


Am'ts.   g 


3  m. 

3  m. 

4  m. 
3m.| 
2m 


^ 


597 
389 
869 
678 
379 

Gm 

527 
098 
200 
765 


63 
51 

82 
/6 
84' 
91 
35 
54 
00 
93 


5791 


29 


13 
25 

1 

lo! 

27 
8 

23 
8 

19 


Int. 


16 

13 

29 

17 

14 

6 

3 

2 

1 

e 

13 


24 
31 
43 

87! 
31! 
50 
341 
68 
27 
a5» 

33 


1860. 
Mar.  9 
Apr.  2 
June  6 
«  23 
Au.  19 
Sep.  22 
Nov.17 
Dec.  28 
1861. 
Mar.26 


I 


$;jll8  28! 


Cash 

Mdse.  3  m 
Cash 
Cash 

Mdse.  2  m. 
Cash 

Mdse.  2  m 
Cash 

Ba.  in  Cash 
Int.fm.Dr. 
Var.  of  Int. 


Am'ts. 


600 
476 
700 
864 
900 
350 
793 
315 


791  12 


00 
93 
00 
74 
00 
00 
50 
00 


5791 


29 


23 


26 
9 
13 
10 
16 
4 

25 


$ 


Int. 


29 
14 
24 
27 
10 
5 


30 
31 
03 
24 
95 
S3 

12« 
21 

21* 
26 
15 


118,28 


By  making  up  the  above  account  to  the  26th  March,  instead  of  the 
January,  the  variation  of  interest  will  be  11  cents. 
12  (133) 


Ist  of 


n: 


i\^ 


BOOK-KEEPING. 

Middlesex  Cotton  Mills  in  Account  with  Briggs  &  Co. 
Interest  to  lath  November,  18—. 

Dr.  Cr.  Dr. 


INTEREST. 


18— 

Cash  paid  Treasurer 

Amount*. 

1  Amounts. 

M. 

1 

D. 

Inter'st.  Inter'st. 

Oct'r   4 

soooo'oo 

11 

205 

ioo 

«     13 

do.    do.       do. 

25000  OOi' 

I  1 

1 

2 

133  .33 

"     18 

do.    do.       do. 

10600  00 

28 

49 

00 

Nov.    5 

do.    do.       do. 

4000  00 

10 

1 

i      fi 

67 

"      10 

do.    do.       do. 

10000  00 

5 

1 

'      8 

33 

June  30 

Sales  Cottons  Ist  Jan. 

155896 

28 

1 

17 

1221 

19 

July  31 

do.       do.    30th  Nov. 

62638 

76 

15 

!  156 

60' 

Sept.  29 

do.       do.    12th  Feb. 

'  53715 

55 

2 

28 

787 

a3 

Oct'r  31 

do.       do.    Cash 

i     6000 |00 

15 

15 

00 

Nov.  14 

do.       do.      do. 

21908  62 

1 

3  66 

»      15 

do.       do.      do. 

8i"53  36 

t(     {( 

Balance  of  Interest 

2549 

29 

2549  29 

«     (( 

Balance  of  Account 

• 

1 

226923 

28 
57 

i 

57 

« 

2567 

95 

2567 

1 

308972 

308972 

95 

The  above  account  current  differs  in  form  from  those  previously  given,  and 
m  some  respects,  possesses  advanta-es  over  the  others.  The  student  can  adopt 
either  form  m  practice,  which  best  suits  his  own  convenience. 

Sales  of  Cotton  for  Account  o/ Messrs.  Gray  &  Son,  New  Orleans. 


18— 


May  15.     Baker  &  Co.,  10  Bales,  Nos.  174  to  1^3.    6  months. 

")5C174   360  95^176  382  ^178  390  y^^lSO  300  95)1182  420 
175    375       177  400       179  385        181  390        183  498 


.35      -j-     782     +      775      +      786      +     918=3996 lbs.® 8^0.  $: 

339 

66 

18- 

Charges. 

May  1 

Freight  and  Drayage                                                           • 

20 

1 
00 

«'     1 

Advertising 

6 

oo' 

«   15 

Commission,  5^ 

16 

98' 

"   15 

Guaranty,  2^^ 

8 

49! 

51 

47 

Net  Sales  due,  by  average,  18th  December 

288 

19 

N  OTE.    Accounts  of  sales  are  averaged  in  the  same  manner  as  other  accounts 
Commission  and  guaranty  on  sales  of  goods  are  considered  by  custom  to  be 
due  at  the  date  of  the  sale,  whether  the  goods  are  sold  on  credit  or  not.    This 
fact  must  be  regarded  whenever  the  average  date  of  commission  or  guaranty 
18  to  be  ascertained. 

(134) 


BOOK-KEEPING. 
Havana. 


COMPUTATIONS  IN   EXCHANGE. 


18- 1  i^i^'f^ffiip^ii^drysis 

Jan.  ai  Sampson  &  Co.      ^ 

Mar.  1  ' ' 

May   3 
"    15 


I,! 


1*- 

Jan.    1 

«    10 
.«    17 

«    21 

May  15 


J.  Uawes&Son 
Rand  &  Fuller 
Kdw.  F.  Gage         N 


t  300.00 

172.3.32 

500.00 

1004.80 


Freight  and  Duties 
Wharfage 
Insurance 
Advertising 


2fith  March 


r"th  March 


Commission  5^  on  $3618.12  due,  by 


Guaranty  2i^  on  $2613.32  due,  by 


Not  Sales  due,  by  average,  25th  August 


I 


(136> 


COMPUTATIONS  IN  EXCHANGE. 

(See  Article  Bills  of  Exchange.) 

A  bill  of  exchange  drawn  in  Boston  upon  New  Orleans  will  command  a 
premium  whenever  there  is  a  scarcity  of  New  Orleans  funds  iu  IJoston,  or 
wlienever  the  general  state  of  indebtedness  is  in  favor  of  New  Orleans  ;  and 
it  will  be  at  a  discount  when  bills  on  New  Orleans  are  so  plentiful  in  Boston 
as  to  exceed  the  demand.  This  variation  in  the  price  of  bills,  caused  chiefly 
by  their  scarcity  or  abundance,  is  called  the  Course  of  Exchange,  and  is  com- 
puted at  so  much  per  cent.  If  it  be  at  a  premium,  the  purchaser  has  to  pay 
more  for  his  draft  than  the  face  of  it ;  if  at  a  discount,  he  pays  less  than  the 

face  of  it. 

There  is  but  one  way  of  computing  the  cost  of  a  bill  or  draft  for  a  given 
sum  when  it  is  at  a  premium,  which  is  to  add  to  the  face  of  the  bill  as  many 
hundredths  of  itself  as  the  rate  indicates.  Thus  a  bUl  for  $1500,  at  a  premium 
of  1  per  cent.,  would  cost  the  purchaser  $1515. 

There  are  two  ways  of  computing  the  cost  of  a  bill  for  a  given  sum  when  ex- 
chan're  is  at  a  discount,  viz. :  to  deduct  from  the  face  of  the  bill  as  many 

HUNOREOTHS  OF  ITSELF  AS  THE  RATE  INDICATES,  which  iS  the  CUStom  With 

bankers  and  dealers  in  exchange,  when  the  bill  is  only  for  a  small  sum  ;  and 
the  other  is  to  divide  the  face  of  the  bill  by  loO  increased  by  the 
KATE  PER  CENT.  OF  DISCOUNT,  wliicli  is  tho  strictly  accurate  method.  Thus, 
if  I  apply  to  a  banker  for  a  bill  of  exchange  to  pay  a  debt  which  I  owe  in  New 
York  of  $500,  wlien  exchange  is  at  a  discount  of  2  per  cent.,  he  will  deduct 
from  the  draft  2  per  cent,  of  the  face  of  it,  and  for  $4<K),  which  I  pay  him,  he 
will  give  me  a  draft  for  $500 ;  whereas  I  ought  to  pay  him  such  a  sum  as 
would  amount  to  $500  if  increased  by  2  per  cent,  of  itself  The  difi-ercnce  in 
this  case  between  the  banker's  discount  and  the  true  discount  would  amount 
to  20  cents,  which  dilTerence  would  be  in  my  favor. 

Again,  if  I  carry  $om  to  a  banker,  and  desire  him  to  give  me  a  draft  on  New- 
York  for  as  large  a  sum  as  he  can  for  the  money  I  pay  him,  and  exchange  on 
New  York  is  at  a  dihicount  of  2  per  cent.,  he  will  add  2  per  cent,  of  the  sum 
to  itself,  and  give  mo  a  draft  for  $510  ;  whereas  he  should  give  me  a  draft  for 
such  a  sum  as  would  yield  just  $500,  if  decreased  by  2  per  cent,  of  itself.  In 
the  latter  case  I  pay  $5(K>,  and  receive  a  draft  for  $510 ;  but  I  should  m  justice 
receive  a  draft  for  $510.20.  The  dillerence  between  the  true  discount  and 
the  BANKER'S  discount,  in  this  instance,  is  20  cents  in  the  banker's  favor. 

I  have  referred  to  tlie  two  modes  of  computing  discount  upon  drafts,  for  the 
purpose  of  directing  the  student's  especial  notice  to  the  distinction  between 
the  true  and  the  nominal  discount.  Tlie  results  iu  the  examples  wliich  fol- 
low are  obtained  by  computing  ac(;ordiug  to  the  most  accurate  method,  as 
the  other  plan  is  adopted  only  when  the  sums  are  so  trifling  as  to  preclude 
the  necessity  of  being  exact. 

What  is  the  value  of  a  draft  on  Springfield  for  $1750,  at  a  premium  of  ^  of  1 
per  cent.  ?  ^"*-  $l'54..iri. 

Bou^'ht  a  bill  on  Philadelphia  for  $3000  at  l4  per  cent,  discount.  ^^  hat  did  I 
pay  for  it.'  A7is.  $2^Joo.67. 

12*  (137) 


BOOK-KEEPING. 


COMPUTATIONS  IN  EXCHANGE. 


h 


Ik  * 

m 


1 


I  wish  to  pay  a  debt  duo  in  N.nv  York  of  Sjooo.  What  will  a  bill  coBt  me 
cent  '      *™*'""*'  Pfo^'flt^d  exchange  ou  New  York  is  at  a  discount  of  2  per 

T  ,"■    „  .  .      ,,  Ans.  S  1900.78. 

ill^^^^^^yposHcsBion  the  net  proceeds  of  a  sale  of  cotton  amountin- to 
fl.fi.>,  which  my  correspondent  desires  me  to  remit  to  him  in  New  Orleans  • 
exchange  on  New  Orleans  is  at  a  discount  of  2^  per  cent.,  and  I  invest  the 

rr    '  u    1       ,  ,  ,  ,  ^"*-  $3801.54. 

How  murh  should  I  have  to  pay  for  a  draft  for  $3705,  exchange  beinjr  at  a 
preramra  of  l4  per  cent.  ?  ^ „^  "^.y^,^  jT,!"  * 

1  srli  a  (K)  days'  bill  on  Cincinnati  for  $.1750.08,  at  a  discount  of  3  per  wnt 
anl  mtcrest  off.    What  does  the  draft  produce  me  at  that  rate? 

An^   $300**  OT 

A  St.  Louis  merchant  wishes  to  pay  a  debt  of  $575  due  in  Boston,  and  ex- 
change on  Boston  is  at  4f  per  cent,  premium  in  St.  Louis.  What  would  a 
dralt  for  tliat  amount  cost  the  merchant,  at  the  above  rate?       Ans   $(J0''  31 

Owing  a  debt  of  $37^.5  due  in  New  Orleans,  I  purchase  a  draft  and  remit'to 
my  creditor,  when  exchange  is  at  a  discount  of  24  per  cent.  How  much  do  I 
have  to  pay  for  the  draft  ?  ^  ^,^   ^^.^^^^ 

Note.  Suppose  my  creditor  in  New  Orleans  should  decide  to  draw  a  draft 
on  me  payable  to  some  tliird  party  ;  his  draft  would  bo  for  $3705,  and  I  should 
have  to  pay  that  sum,  notwithstanding  exchange  is  at  a  discount.  And  if  I 
desire  to  avail  myself  of  the  advantage  which  the  discount  offers  me,  I  must 
purchase  a  draft  and  remit  to  him,  and  not  wait  for  him  to  draw  upon  me. 
J.}^''''  i°  "^^  POSHOssion  the  net  proceeds  of  a  sale  of  cotton  amountin'o-  to 
$3j>o,  and  my  correspondent  desires  me  to  invest  the  amount  in  a  draft'and 
remit  to  him.  For  how  much  will  the  draft  be  drawn,  exchange  bein'  at  °i 
per  cent,  premium  ?  ^^^^  ^hil^ 

STERLING  EXCHANGE. 

Exchange  on  Great  Britain  or  Ireland  is  usually  quoted  thus-  «10S" 
"  lOH,"  "  110,"  .tc.,  which  means  that  108,  10«4,  or  110  poumls  of  tlie  nom/zmZ 
par  iulue  of  $4.41f  to  tiie  pound  are  requireJ  to  pay  for  100  pounds  of  the 
present  commercial  value.  If,  as  is  very  rarely  the  case,  exchange  should  be 
quoted  at  "  9S,"  it  would  signify  that  98  pounds  of  the  nominal  par  value  of 
$4.44f  would  purchase  100  pounds  of  the  commercial  value.  The  commercial 
value  of  a  pound  is  what  it  costs  to  buy  a  pound,  whether  $5  or  $4.  The  real 
par  value  of  a  ix)und,  which  is  the  unit  of  value  in  Great  Britain,  and  which 
IS  often  called  a  sovereign,  is  the  exact  value  of  that  coin  expressed  in  our 
own  exirrency,  and  which  is  usually  sot  down  at  $4.&1,  and  it  is  taken  at  that 
value  by  the  Lnited  States  government  in  payment  of  customs 

Exchange  on  France  is  usually  quoted  thus  :  5.10,  5.114,  513,  &c  whiVh 
means  5  francs  10  centimes,  or  5  francs  llf  centimes  to  thf  dollar  As  bills 
of  exchange  on  any  part  of  Europe  are  usually  drawn  through  London  or 
Pans,  we  seldom  find  quotations  of  exchange  except  on  England  or  France 
When  they  are  given,  however,  they  express  the  number  of  cents  which  ire 
required  to  purchase  a  unit  of  the  foreign  currency  ;  for  example,  if  exchan-e 
on  Holland  is  quoted  at  42,  it  signifies  that  the  exchange  value  of  a  florinls 
42  cents,  which  would  be  a  premium  of  5  per  cent.,  the  real  value  of  a  florin 
being  40  cents.  To  determine  the  value  of  a  given  amount  in  any  forei^  cur- 
rency, except  sterling,  in  dollars  and  cents,  we  must  get  the  number  of  units 
Of  the  foreign  currency  which  are  equivalent  to  a  dollar,  and  then  divide  the 

(138) 


given  amount  by  that  number  of  units  ;  for  example,  to  determine  how  many 
dollars  there  are  in  3000  francs  50  centimes,  allowing  5  francs  10  centimes  to 
the  dollar,  we  divide  .3000  francs  50  centimes  by  the  number  of  francs  and 
cenlimes  in  our  own  unit  of  value ;  thus,  3000.50  -^  5.10  =  5.s8.33i.  If  we  wish 
to  ascertain  how  many  dollars  there  are  in  6000  florins,  divide  0000  by  the 
number  of  florins  in  a  dollar,  and  we  get  the  value  in  federal  money ;  thus, 
COOO  -^  24  =  2400  ;  or  multiply  by  40  and  divide  by  100,  which  would  produce 
the  same  result. 

Note.  Quotations  of  sterling  exchange  are  always  understood  to  be  for 
00  day  bills,  unless  otherwise  specified.  Sight  bills  command  a  higher  price 
thail  bills  on  time. 

Rule  for  chaxging  Sterling  to  Federal  Currency. 

Multiply  the  number  of  pounds  and  decimal  of  a  pound  by  40,  and  divide 
by  9.  Add  as  many  hundredths  of  this  sum  to  itself  as  the  rate  of  exchange 
may  express. 

Reason  of  the  rule :  The  original  value  of  the  pound  sterling,  upon  the 
establishment  of  the  federal  currency,  was  $4.44|^,  which  was  termed  the  par 
of  exchange  on  England.  This  practice  began  when  the  Spanish  pillar  dollars 
were  in  circulation,  and  when  the  market  value  of  gold,  compared  with  silver, 
was  less  than  at  present.  Tiie  Spanish  pillar  dollar  contained  pure  silver, 
which  was  worth  4  s.  Od.  sterling,  so  that,  a  dollar  having  Q  sixpences  in  it, 
and  a  pound,  or  20  shillings,  having  40  sixpences,  it  was  a  very  easy  matter  to 
compute.  If  it  was  wanted  to  turn  pounds  into  dollars,  the  poiinds  were 
multiplied  by  40  and  divided  by  9,  and  vice  versa.  Afterwards  the  value  of  the 
dollar  was  reduced  — that  is,  more  alloy  was  put  into  it  — to  4  s.  2d.,  that  is, 
50  pence  to  the  dollar,  making  each  penny  sterling  worth  2  cents,  whicK  gives 
$4.80  to  the  pound  of  20  shillings,  or  240  pence.  But  latterly  the  dollar  has 
been  reduced  to  4  s.  1  d.  nearly,  which  makes  the  pound  Avorth  nearly  $4.87,  or 
109it  per  cent.,  that  is,  9^  per  cent,  above  the  nominal  par  of  $4.44.44 

^  "  9^ percent^  42^ 

4.80.G6 

English  coins  of  the  reigns  of  George  IV.  and  William  IV.  are,  however, 

generally  below  the  legal  standard  :  these  average  about  $4.84,  as  near  as  can 

be,  which  is,  in  the  language  of  the  sterling  exchange  market,  109  per  cent. 

Nominal  par,  $4.44.44 

9  per  cent,  added,  3999 

$4.84.43 

But  as  the  rate  of  premium  is  not  always  9  per  cent.,  but  is  constantly  vary- 
ing in  commerce,  being  sometimes  more  and  sometimes  less,  we  must  add  as 
many  hundredths  of  the  nominal  par  value  to  itself  as  the  rate  of  premium 

may  express. 

Example  :  I  receive  a  sterling  bill  of  exchange  for  £825  3  s.  1  d.  What  is  its 
value  in  dollars  and  cents,  exchange  being  at  8  per  cent,  premium .' 


12 
20 

£ 


1. 

3.083 

825.1541 


£825.1541 
40 

9 )  33000.  ItHO 

3607.3515 

8  per  cent,  premium. 


(139) 


293.388120 
3007.35 

$3960.74       Ans. 


f : 


^ij 


BOOK-KEEPING. 

The  following  is  the  host  rule  f.)r  changing  federal  ctirrMicy  to  storlinr?'. 

Multiply  the  number  oi"  dollars  by  'J,  and  divide  by  4''.  Th.'u  suy,  As  iOI 
with  the  rate  of  exchnnge  added  is  to  100,  so  is  the  number  of  pounds  obtained 
by  the  first  operation  to  the  number  of  pounds  desired. 

I  wish  to  invest  Sir'nJ.NO  in  a  sterling  bill  of  exchange.  For  how  many 
pounds  must  the  bill  be  di-awu,  exchange  being  at  a  premium  of  8  per  cent.  ? 


ILLUSTRATION. 


3760.80 
9 


40 )  3.3«7.L'0 


£840.18  at  $i.4-l|  each. 


108  :  100  :  :  846.18 

100 

106 )  84618.00 

£783.50 
20 


8.  10.00 
Ans.  £783.10. 


I  receive  an  invoice  of  goods  from  Liverpool,  amounthag  to  £783.10.  How 
much  in  federal  money  will  pay  the  amount  of  the  invoicg,  exchange  being  8 
per  cent,  premium .'  Ans.  $3760.80. 

ILLUSTUATIOX. 


20  10 
783.5 
40 


3482.22 
8  per  cent,  premium. 


9)31340.0 


$3482.22  at  $4.44^  to  the  pound. 


278.5776 
3482.22 

$3760.79.76 


This  example  being  the  opposite  of  the  one  just  given,  it  will  be  Peen  that 
one  proves  the  other. 

What  is  the  equivalent  In  sterling  of  $375,  exchange  being  at  a  prominm  of 
10  per  cent.?  ^^    £76.14.1. 

What  sum  m  federal  money  must  T  pay  for  a  bill  on  London  of  £70.14.1, 
exchange  being  1^-  per  cent,  premium,  and  the  broker's  commission  for  neo-o- 
tiating  the  bill  being  ^  of  1  per  cent.  ?  Ans.  $.375.0o! 

Change  $17357. 10  to  sterling  currency,  allowing  a  discount  of  2  per  cent,  on 
the  nominal  par  value  of  a  pound.  ^ns.  £3980.10.0. 

Suggestion  :  Get  the  number  of  pounds  at  par,  first-,  then  say,  As  98  is  to 
100,  so  is  the  number  of  pounds  at  par  to  the  number  desired. 

What  is  the  value  in  federal  money  of  a  sterling  bill  for  £3980.10.0,  when 
exchange  is  at  98  >  ^  ns.  $17337.40. 

John  Stone  .V  Son  purchase  of  Flint,  Edwards  h  Co.,  a  sterling  bill  at  00 
days,  on  Rae,  Wilbur  h  Hart  of  London,  for  £.39;"iO,10.0.  They  remit  this  bill 
to  James  Adler  in  Tendon,  where  it  is  accepted  by  R.  W.  &  H.,  and  falls  due 
on  the  ^Oth  Nov.,  at  which  time  it  is  protested,  causing  an  expense  of  £2.19.0. 
R.  W.  &  H.  having  failed,  Flint,  Edwards  &  Co.'s  agent  in  Londcm  pays 
James  Adler  on  tlie  said  20tli  Nov.,  £2000  on  account.  IIow  much  must 
Hint,  Edwards  *  Co.  pay  to  John  Stone  &  Co.,  on  the  24th  Dec.,  to  cover  the 
amount  still  due  in  London,  allowing  interest  at  the  rate  of  10  per  cent,  from 
Nov.  20th  to  the  maturity  of  a  <i0  days'  bill  at  date  of  24th  Dec,  and  \  of  1 
per  cent,  commission  for  their  trouble  in  negotiating  a  new  bill  .•• 

Ans.    $9815.91. 
(140) 


I 


COMPUTATIONS  IN   EXCHANGE. 


Flint,  Edwards  &  Co.  in  Account  icifh  John  Stone  &  Son,  Dr. 


£ 

s. 

d. 

£ 

s. 

d. 

18— 
Dec.  24 

For  your  CO  days'  Bill  on  Rae,  Wilbur  Si 

llartjdue  in  London  Nov.  2Uth,  returned 

protested 

Cr. 

For  Amount  paid  in  London 

Exrs.  —  Stamp  £2,  Protest  19  s. 

Interest  from  Nov.  20  to  maturity  of  a  60 
days'  bill  drawn  this  date ;  say  97  days 
ou  £1959.9.0  at  10  ;;'g 

Commission  4  ^  on  £1959.9.0 

Due  ii!  London, 

Of  this  £195(5.10.0  as  a  CO  days'  bill  at  (cur- 
rent rate  of  exchange)  IC.tJ, 

59.18.5  as  a  sight  bill  @  llO^ 

3d5C 

2000 

10 

19 

1 

18 

0 

0 
0 

5 

Oi 

1956 
59 

10 

18 

8 

91 

2 

62 
4 

0 
5 

$9521  03 
1      294  28 

i 
1 

i 

£2010 

5 

$9815 

As  sterlinir  exchange  fluctuates  with  almost  every  steamer,  annexed  is  a 
Table,  showing  the  value  in  dollars  of  a  pound  at  an  advance  of  from  G  to 
12j  per  cent. 


6               &H 

6K 

6% 

(^'4 

^% 

6^             G% 

1 

$4.7111 

4.7107 

4.7222 

4.7278 

4.7333 

4.7389 

4.7444 

4.7500 

1 

7^^ 

7^4 

7%              7M             7% 

m 

7% 

$4.7555 

4.7011 

4.7007 

4.7722 

4.7778 

4.78.33 

4.7889 

4.7944 

8 

^Vs 

»K 

8% 

s'A 

8% 

8% 

8J-8 

$4.8000 

4.8055 

4.8111 

4.8106 

4.8222 

4.8278 

4.83.33       4.a389 

V 

9% 

9K 

9%      j       9^ 

^'Ji 

9% 

9.% 

$4.8444 

4.8499 

4.8555 

4.8011 

4.8067 

4.8722 

4.8778 

4.8S:i3 

10 

lf'% 

W4 

10% 

10^ 

10% 

10% 

lojji 

$4.8889 

4.8944 

4.9000 

4.9055         4.9111 

4.9107 

4.9222 

4.9278 

11 

IIJ^ 

UK 

11% 

11^ 

11% 

n%    j   11 -<^    i 

$4.9333 

4.9;j89 

%9444 

4.9500 

4.9555         ^.fKill 

4.9067 

4.9722 

12 

12% 

12^4            12% 

12'^    "1      125.^ 

12% 

12% 

$  4.9778 

i.9fm 

4.9889 

4.9W4 

5.             5.0055 

5.0111 

5.0167 

(141) 


i> 


i| 


*  t-, 

-  <•    •! 

U  \ 


BOOK-KEEPING. 
ILLUSTRATIOX. 

£      1  at  Ol  per  cent,  is  . 

iO  '♦    "  «        «4      „         $      4.86 

100  *«    «'  u       u      „ 48.0r. 

1000  «    »«  .<        u       u 4K').07 

Jei53x 

10  8.1  4-87-8=  $r4n..30 

5  8. 1  2.44 

2  8.  Od.  1  1.22 

the  -luo"  A^h^^^^^^^^^  to  f.  0350.I0.    What  is 

"'<-UL>  ,  allouiug-  51  francs  to  tl.e  dollar  > 

Wha.  .u.  ,  p..,  ,„,  ,  ,„,.  „,,,^  „^^,^^_  ^^  ^  ^_^^___^  ^^^  ^^^  ^^^^  ^ 

Sugrg-cstion  :  Increase  the  value  of  -i  finrin  ,  i     u  •  "'''•"•  S'^-W. 

Multiply  the  number  of  florins  hvti;.,'  ''?"^  '^  ^^  '^^^''^^  '•>'  5  per  cent 

Will  be  the  value  in  fkoral  monoy  "^  '''''  ^""°^'  '"^  ^•^^*^'  ^^^^  the  r^^uU 

istirrsrh:::;;;-;:-^-. 

15  pounds  and  the  silver  ruble  is^a  u^'af  75  ce^ts  '  ""'"  "'  '  ''''''  ••"'"^-  '^' 
Su-resti.,n  :  Ascertain  the  number  nf  ^V    ?^  ^»*-  3!:u.3(.. 

whole  numlK^r  of  pounds  by  is^H  thl  ^r^;^'  V^""  "^  ^«^^«-    I>ivi'lo  the 
rnblos  whi.-h  the  Tmp  will  cosi     'Jhen  .h?       T"  ^"^^  '^'  """^b^"'"  o^  silver 

The  examples  already  o,ven  ,re  intended  t  "V'''  T'"'  ""  ^^''^''^l  ">"n-v. 
exchano^e  where  the  c,,rrencies  of  ^1  "t  -  1"  T  "''  "'""'*^'-  ^^  eon.putino- 
a«  iHustrations  of  what  is  termed  Di  ect7vl?'"'''  T  ^«--"<^^d.  ^"^  «orve 
observed,  bills  of  exchauj^e  are  usually  .^^^^"f-,  ''"*'  ''«  ''"^  ^^^n  a'-.uly 
London  or  Paris,  which  is  often  ad  -"ft  C«",  to  N'^'f  '"""^''^'^  ''^'^'^Sh 
inuch  as  by  this  indirect  course,  he  ean  pnv  "Iht  nl  '"''"'  ""^  ^  ^"''  "»^«- 
than  by  drawinjr  «  bill  directlv  ....  .V*i       /  *  °^  '*  °'''^"  amount  for  less 

The  rollowin.rexamDrs  rl  i^  t^^  place  where  the  debt  is  due  ' 

are  usually  term::;^S:?'^::;i:r ' ''^  ^^^""^'^^^ -^^^  ^^--^^^^ 

^-^^^^^^I'l^Tl^'S^^^  London.    Ster- 

«jf  4  <ranc8  to  the  dollar,  and  of  P«r  1         ^f^-^'^,h«»Sre  on  Paris  is  at  the  rate 

Wbieb  course  will  be  most  to  his  ad -ama.^; "to'?  ''^'""^^  ^^  "'^'  I^""^ 
tlirough  Paris  .'  '^  *"'  nnta^rc^  to  draw  directly  on  London  or 

„^ox      "''■    '^^"■°"&b  Paris,  by  $-00.0(5. 
(142) 


COMPUTATIONS   IN   EXCHANGE. 


Direct 

ILLUSTKATION. 

Indirect. 

£1000 

£m)o 

40 

-1 

9 )  40(X)0 

4)24444| 

4444.44| 

j§4444.4l| 

200.»)G(36 

4444.44 

$4711.1006 

Such  examples  are  frequently  performed  by  what  is  called  the  Chain  Rule, 
which  is  illustrated  by  the  following  operation  :  — 

Draw  a  horisoutal  line,  and  place  the  amount  to  be  remitted  above  it  at  the 
left  hand.  Below  the  line,  a  little  to  the  right  of  the  amount  above,  place  the 
number  of  units  of  the  same  name  or  denomination  as  that  first  written,  and 
above  this  last  number  write  its  equivalent' in  another  denomination,  and  con- 
tinue to  arrange  all  the  different  denominations  in  the  same  manner.  Then 
make  a  dividend  of  the  product  of  all  the  numbers  above  the  line,  and  a  divi- 
sor of  the  product  of  all  the  numbers  below  the  line,  and  the  quotient  will  be 
the  result  desired.  If  any  numbers  above  and  below  the  line  mutually  cancel 
each  other,  it  is  better  to  see  that  they  are  cancelled  before  multiplying  and 
dividing. 

By  tliis  rule  the  example  just  given  would  be  arranged  thus  for  the  indi- 
rect:— £i00U    2 1|- franca    $i 

£  i  i^  francs. 

But  in  order  to  prepare  the  statement  for  cancelling,  we  cliange  the  24^.  francs 
to  ninths,  and  the  1  pound  to  ninths,  the  j-|  francs  to  halves,  and  the  $1  to 

=  $4444.414. 


halves,  thus :  — 


ilOOO    220f.    $>' 


£y       llf.      "         ''9" 

To  compute  for  the  amount  to  be  paid  for  a  draft  direct  upon  London,  the 

statement  by  the  chain  rule  would  be  as  follows  :  — 

£l(titO    $iO    $UX5 

^,_  -  ^       =$4711.11. 
£'J     $100 

Having  to  remit  £414.158.  to  Liverpool,  T  wish  to  know  which  is  the  most 

profitable,  to  buy  a  set  of  exchange  on  Liverpool  at  lOl  per  cent.  i)remium, 

or  send  it  by  way  of  France  ;  exchange  on  the  latter  place  being  l<i|  cents  per 

franc,  and  exchange  on  Liverpool  can  be  bought  in  France  at  the  rate  of 

24I  francs  per  pound  sterling,  and  I  have  to  pay  my  correspondent  in  France 

•|  of  1  per  cent,  for  purchasing  the  bill  on  Liverpool. 

*  Ans.    By  way  of  France,  $15.69. 


Direct. 
434.75    40     110^ 


ILLUSTR.VTIOX. 


Indirect. 
431.75     21.5 


1(X)| 


19f 


9      100  1        1«0        1 

I  wish  to  pay  a  debt  due  in  Hamburg  for  30000  marcs  banco.  I  find  that  I 
can  remit  to  London  at  0-1  i)er  cent,  premium,  and  from  London  to  Hamburg 
at  the  rate  of  £3  per  41  mtircs  banco  ;  or  T  can  remit  to  Amsterdam  at  the  rate 
of  41^  cents  per  florin,  ami  from  Amsterdam  to  Hamburg  at  the  rate  of  7 
forins  to  8  marcs  btnco.  Hire^-t  ex.-hauge  is  at  37  cents  per  marc  banco. 
Which  course  will  be  the  most  prolitahle  ? 

Ans.    By  purchasing  a  bill  on  Loudon. 

(H3) 


pi 


Via  Amsterdam. 
m.  b.  30000.     7f.     !§.<? 

-  =  810893.75 


BOOK-KEEPING. 
ILLUSTRATION. 

Marcs  banco  30000  X  $.37  =  $\\  100.00. 


MEASURES. 


Via  London. 
m.  b.  .'Ujooo    £3    $K>    S',M9 

:Z^  =  $10082.93 


m.b.  8      :iuof.  m.  b.  41     £y    $,'uo 

The  proceeds  of  a  pale  of  goods,  consifjncd  to  me  from  liromen,  is  $',>rC4.r.7, 
on  which  1  am  to  charg-e  a  commission  of  10  fior  cent.,  and  remit  the  balance 
to  my  consijrnor  in  such  a  way  as  8ha*ll  be  most  aUvaiitaj,a'0U8  to  him.  Ex- 
cliange  on  Taris  can  bo  had  at  O,'  cents  per  5  francs,  and  in  Paris  exchange  on 
Bremen  is  17  francs  to  4  thalers.  Exchange  on  Liverpool  can  be  had  at^U  per 
cent,  premium,  and  in  Livt-rpool  exchange  on  IJremen  is  r>  thalers  to  tJ>e 
pound  sterling.  Direct  exchange  is  N>-^  cents  per  thaler.  Which  course  will 
be  the  best,  allowing  ^  per  cent,  brokerage  to  corrcsiMJudents  both  in  Liver- 
pool and  Paris  f  ^j^^^    jjy  ^^^y  ^j-  p^jg 

^OTE.    A  Bremen  thaler  has  72  grootcs. 

ILLUSTUATIOX. 

Amount  of  sales, $270^4.07 

Commission  10  per  cent., 270.47 

$2488.20 
Direct. 
$2488.20        400 

=3100  thalers,        40  grootcs. 

Via  Liverpool.  via  Paris. 

24.^8.20    9     100     100    (i  2488^05.00    KJO      4      „         ^ 

=  30G0tha.    28groo.        ^— =310Gtha. 


40    109    10(.4  1 


Ans.    3ri  ftHJt. 


TO  ASCERTAIN   THE   CUBIC  CONTENTS  OF  BOXES,  BALES, 

CRATES,   &c. 

"What  are  the  contents  in  cubie  fief  of  a  bale  measuring  4  feet  0  inches  in 
length,  3  feet  4  iuc'ies  in  width,  anl  2  feet  0  inches  in  depth .' 

Ans.    Sift 

ILLUSTRATION. 
3         5 
-9-      -W      5       75      „  ,   ^    ^ 

The  4  feet  0  inches  are  expressed  as  §  of  a  foot,  the  3  feet  4  inches  are  ex- 
pressed as  ^-  of  a  foot,  and  the  2  f>\'t  "ii  inches  are  expressed  as  ^  of  a  fo(!t. 
The  terms  are  then  cancelled  as  far  as  possible,  and  what  numbers  remain 
above  the  line  are  multiplied  together  for  a  flividend,  and  the  numbon  re- 
maining below  the  line  are  midtinliel  together  for  a  <livisor.  The  quotient 
is  the  solid  contents  in  feet  and  fractional  parts  of  a  foot. 

What  are  the  contents  in  cul)ie  feet  of  a  crate  5  feet  in  length,  4  feet  0  inclies 
in  breadth,  and  3  feet  7  inches  in  depth.  Ans.    aH-A-  feet. 

4  8 
ILLUSTRATION. 

5  X  19  X  43 

IX    4X1^ 

Shipped  to  California  12  crates  of  crockery,  each  measuring  n  feet  3  inelies 
long,  4  feet  8  inches  wide,  and  3  feet  9  inches  deep.  What  did  the  freight  on 
the  whole  amount  to  at  20  cents  per  cubic  foot  *  Ans.    $202.50. 


ILLUSTRATION. 


12    25    14    15     20 
1      4      3      4      100 
(144) 


=  202.50 


A  USEFUL  TABLE  FOR  FARMERS. 
A  box  24  by  28  inches,  and  10     inches  deep,  will  contain  a  barrel  of  5  bush. 


10 

(( 

10 

(( 

(( 

21 

10 

(c 

10 

(( 

(( 

h\ 

10 

cc 

8 

(( 

(C 

h% 

8 

(( 

8 

(( 

(( 

%V 

8 

(( 

8 

(( 

(( 

*A 

4 

(( 

8 

(( 

(4 

4  2 

4 

(( 

4 

« 

(C 

4-2- 

(( 


(( 


(( 


(C 


cc 


(( 


« 


<( 


a  bar.  of2-l-buslL 
1  bushel. 

half  a  bushel. 

a  peck. 

a  gal.,  or  ^  peck. 

^  a  gal.,  or  2  qts. 

a  quart. 

♦h^l'  ""t  ^^Jlfr""  f "  !""'?'  measures,  and  are  computed  to  correspond  with 

tnL  ";  n  4  ,'•'  '*'';'^"'^  ^^^"^  ^"^^"^^'  °^  Winchester  bushel,  which  con- 
tains  2l50^*g^  cubic  inches. 

H  Jrh  T""-  /""^  ^^^P^^y^  OF  A  BIN.  Multiply  the  length,  breadth,  and 
depth,  ( mside  measure  taken  m  inches,)  together,  and  divide  the  product  by 
2150.4  ;  the  quotient  will  be  the  contents  in  bushels 

Dividing  the  product  by  5370  will  give  the  contents  in  barrels  of  2l  bushels 
Dividing  the  product  by  10752  will  give  the  contents  in  barrels  of  5  bLhels 

mt?'t?«  t>'?f'''?.'*^  ^  ''^°'  ^^  *^^  ""^"^'•^'^  <^*^"t«^ts  in  bushels,  being 
given,  to  find  its  third  dimension.  " 

fhe^niS^V^'tf 'T  ^"'"^^'- °^  »^"«h^l«  by  2150.4,  and  divide  this  product  by 
the  product  ofthe  two  given  dimensions  in  inches. 

tI?  ^;^'^'^''^  ^i!^\^  VV^HEN  IT  IS  HEAPED  UP  IN  THE  MIDDLE  OF  A  FLOOR. 

Take  the  perpendicular  height  and  the  slant  side  of  the  heap  in  inches  and 
multiply  the  difference  of  the  squares  of  each  measure  by  the  perpendicular 
height,  and  divide  the  product  by  2053  ;  this  will  give  the  number  of  bushels 
very  nearly. 

r/Vi  ^l  ^'^^^""^  "P  ^^"^"^^^  ^  partition,  take  one  half  of  the  above  result 
If  It  be  heaped  up  in  a  right-angled  corner,  take  one  quarter  of  the  above 

*  "  B  LI  I  IJ  • 

Example  :  How  many  bushels  in  a  heap  of  grain  lying  in  the  middle  of  a 
3  inches  ?  ^''''P^'"^'^"^^''  ^^'^^*  ^^""S  4  feet  0  inches,  and  the  slant  side  7  feet 

ILLUSTRATION. 

87  In.  X  87  in.  =  7509  square  of  slant  side. 
54  in.  X  54  in.  =  2910  square  of  height. 
4053  difference. 
^4  height  in  inches,  multiply. 


251202  -;-  2053  =  122  bushels. 

TABLES  OF  CUBIC  MEASURES. 

«  Measurements  of  cubic  contents  are  usually  made  in  feet  or  in  inches,  and 

or  llln"!  r^i"  ''  '''^°*'^ '°  ^y  ^'^'"'  "'^^'"'■*''  '"^^^  ^'  y^^^'^  P^'-^h^S'  bushels, 
urement  necessary  reduction  is  made  from  the  result  of  the  first  meas! 

«fl'  ^T,  ^i"^  ^rT"".  ""^  ''^'''«*^^'°S-  tbe  labor  of  such  reductions,  I  have  con- 

u"Z  Jn  """^"^  *''^'''  '''''''''  ™^"^  "•'"'  ^-^^°"*  d«»bt,  find  very 
u-  ui  as  tliey  give  m  a  convenient  form  the  relations  which  several  of  our 
units  of  measure  bear  to  others. 

13  (146) 


1 


B0OK-K££PLNG. 

site  the  word  '  Yard,'  wi  1  bo  fouid  the  "i^-^ho  .  '  .""^''  *^"''  ^^^  ^PP"" 
about  four  and  three  qTiartera  If  thn  n.  T^'"'' °/  ^^''^^  ^"  "  ^^'^'  ^v'uch  is 
wanted,  then  the  ^^d" t:  il '  wi  ^be  Suml^at  STo^"'?/^  '^  '"^'^^^ '' 
side  ;  under  one,  and  opposite  the  other!  ^^iTlL  bund  the  TJ.Z""' '  ''  '^' 
which  is  about  one  foot  and  a  quarter  0«>osTt.A  K?.i  ?  ,  ^''  ^*^1"i'"'^d, 
you  (Ind  that  a  foot  is  about  eiX  J^nths  o?Xs^^^^  ""''  ""'^^''' '  *^"«*'' 

holdin,  grain  to  xneasure  ..  fe^T^Z  ^^^  o'e^rdeTtL?"^  ''' 

12X8X5  =  480  feet 
multiply  by         .g 

and  the  result  384.0 
Is  the  number  of  bushels,  very  nearly.  The  work  Pnn  ho  «,«.«  .  ,     , 

by  using  the  full  decimal  given  in  the  table.  ^°''  accurately  dow 

It  will  also  be  seen  by  the  table,  that  there  are 


216 

128 

27 

243 


feet  in  a  square, 
cord, 
yard. 
"      "    perch. 


2150.42  inches  in  a  bushel. 


1728     inches  in  a  foot. 
537.6      "         "    peck. 
268.S      «        »    gallon. 
^'•'■^      "         "    quart. 
&c.,  «Scc. 


TABLE  No.   1. 


Sq. 

Cd. 

Yd. 

Pch. 

Bu. 

Jt. 

leek 

Gall. 

Qt. 

Inch  I 


1 
1.6875 

8. 

8.7273 

173.576 

216. 


.5926 
1 
4.7408 
5.1718 
102.8G-' 

128. 


.125 
.210'J.') 

1 
1.0909 


.11458 

.19.3.35 

,91064 

1 


.005761 
,009722 


.0046.30 
.007813 


.046089J  .037037 


:  1.697!  10.8885 


694..306|  41 1.448 
1388.61  j  822.8961 
•5554.45 '329 1. 58 1 
37.3248.221187.1 


I     27.        24.75. 

80.7882|  79.5540 
173.577 1 159. 108 
694..30<ij6;j.j.432j 
46656.0  42766.8  2150.42'  1728 


.050.i80 

1 
1.24445 

4. 

8. 

32.  ; 


.0404(4 
.803558 

1 
3.21427 
0.42854 
25.7142 


.001440  .000720 
.0024:5o|. 001215 
.01152X'j. 005761 
.012370  .006285 


.25 

.311112 

1 

2. 

8. 


.125 

.155556 

.5 

1 

4. 


537.0051268.803 


.000003 
.000005 
.000021 
.000023 
.000465 
.000579 
,001860 
003720 
014881 
1 


1000  shingles  will  iSy  ™„„ar^',rf  „1 ,,    "  ^  "'""'''=  '''*'•    "  '»  ^•*'  <"•■" 
.  ftw  feet  more  t"„n  i  ,o  ,are     'nT  '  T  "™"">'  P"'  ""•  <'"=y  >""  '«/ 

3  feet  eaeh  wayV^wr^;',,^,';:  ^  "'^  '"  »—  "  »  -^faco  measurio,^ 

contain  one  pereh  „r  'S  ;,^Wc  f«t    tL ™"   ' f  ','"'  """  """  '''""  Ws"  «"' 

^^uHn,  >^..;t^ea^';;^rr„!;J^r£^-;St-2^--^^^^^ 

l-niS'st"ef,f  .''I'L''!  ^'r"''''"  """"='  "<■  '-"?■»""■  -"lA  '■  used  in  the 

(146; 


MEASURES. 

«  The  ^raZ/on  here  given  is  the  standard  for  dry  measure,  and  contains  268  8 
cubic  inches.  The  standard  gallon  of  liquid  measure  contains  231  cubic  inches 
The  old  ale  gallon  contains  282  cubic  inches.  The  imperial  (English)  ^allon 
contams  277.274  cubic  inches.  A  gallon  (231  inches)  of  distilled  water  wei-hs 
8..3:i89  pounds  Avoirdupois.  Tlie  standard  Avoirdupois  pouud  is  equaf  in 
weight  to  27.7015  cubic  inches  of  distilled  water.  A  cubic  foot  of  water  wei<rh8 
about  (i2..38  pounds."  ° 

The  following  table  shows  the  relations  of  the  cubic  contents  of  each  kind 
of  gallon  to  the  others,  and  also  to  a  cubic  foot  and  a  cubic  inch  :  — 


TABLE 

No.   2. 

Foot. 

Ale  Gal. 

Imp.  Gal. 

Dry  Gal. 

Liq.  Gal. 

Inch. 

Foot, 

I 

.163194 

.160460 

.155557 

.1.33681 

.000579 

Ale  Gallon, 

6.12706 

1 

.983241 

.95.3202 

.819149 

.00.3546 

Imperial  Gallon, 

6.2.3210 

1.01704 

1 

.969450 

.8.33111 

.003607 

Dry  Gallon, 

6.42850 

1.04910 

1.03151 

1 

.859.365 

.003720 

Liquid  Gallon, 

7.48052 

1.22078 

1.200.32 

1.16365 

1 

.004329 

Inch, 

1728. 

282. 

277.274 

268.803 

231. 

1 

Received  and  delivered,  on  account  of  Messrs.  Darracott  &  Co.,  various  lots 
of  cotton,  as  follows.  What  amount  is  due  for  storage,  at  20  cents  a  bale 
per  month  ^ 

January  10th,  received     COO  bales    x  9  5400 

"        19th         "  200     « 


800     " 
February  10th,  delivered  200     « 


(( 


(( 


600  " 
20th,  received   70  " 


25th, 


670  " 
200  «' 


March  10th,  delivered 
April  3d, 


«i 


870 
300 

670 


X22 

xio 

X5 

X13 

X24 


17600 
6000 
3350 

11310 

13680 

30)57.340 

1911 
20 


Ans.    $382.20 
Explanation  :  The  first  lot  of  600  bales  was  in  store  9  days  before  any  more 
was  received.    The  600  multiplied  by  9  gives  the  number  of  days  that  one  bale 
should  be  stored  in  order  that  the  cost  should  amount  to  the  same  as  600  bales 
for  9  days.    On  the  19th  of  January  200  bales  more  were  received,  and  the  800 
bales  then  m  store  remained  22  days  before  any  was  delivered.    The  800  is 
multiplied  by  22  for  the  same  reason  that  the  600  was  multiplied  by  9,  and  so 
on  tlirough  the  whole  time.    The  results  representing  the  number  of  days  for 
Which  one  bale  might  be  stored  are  added,  and  the  amount  divided  by  30    The 
quotient  is  the  number  of  montlis  for  which  one  bale  might  be  stored  in  order 
to  be  equiv.alent  to  tlie  number  of  days  for  which  the  given  number  of  bales 
is  chnrgeable.    This  number  multiplied  by  the  price  per  month,  gives  the  total 
amount  due.  ° 

(147) 


SOOK-KEEPINQ. 


APPENDIX. 

SPECIMENS  OF  ACCOUNTS,  EXPLANATION  OF  MERCANTILE 
TERMS,  TRANSACTIONS,  ETC. 


ABBREVIATIONS. 

THE  FOLLOWTMG  CONTRACTIONS  ARE  IN  COMMON  USE:  — 


e At. 

^  or  Acct. .  .  Account. 

A Ampersand,  or  and. 

&c.  or  etc.  .  .  And  so  forth. 

Acce Acceptance. 

Amt Amount. 

Bbl Barrel. 

B/p Bill  of  parcels. 

c Cent. 

Co Company. 

Cr Credit,  or  creditor. 

Cwt Hundred  weijfht. 

Die Discount. 

Dr Debit,  or  debtor. 

$ Dollar. 

Ditto,  Do. .  .  The  same. 
"        "  The  same. 

E.  &  O.  E. .  .  Errors  and  omissionn 
excepted. 

f. Franc. 

Hhd Hoefshcad. 


Int Interest. 

I"st Instant,  the  present 

month. 

£ Pound  sterling. 

L.  8.  d.  .  .  .  Puuud,  shilling,  pence. 

I^bs Pounds  wci<rht. 

Mdwe Merchandise, 

Mo.,  31  o8.  .  .  Month,  months. 
^  ,  No.  .   .   .  Number. 

^ Per  cent. 

^ Per,  each,  by  the. 

Prox Proximo,  the  next 

month. 
Qrs Quarters  of  a  hundred 

weight. 

Ult Tlie  last  month. 

X Multiply. 

-f- Divide. 

+ Add,  or  plus,  more. 

— Subtract,  or  less. 


I   = Equal  to. 

These  fractions  are  written  smaller  and  above  the  other  figures  ; 
thiii^,  ^.'.li-r:,  instead  of  $2,024;  !»»  yards, instead  of  Ibf  yards ;  15i  lbs., instead 
ofl&^lbs.  "*  * 


1    1 


Al.  An  affix  to  a  vessel's  name  at  Lloyd's,  (see  Lloyd's,)  the  letter  denot- 
ing the  first  class  character  of  the  hull  for  build  and  seaworthiness ;  the 
figure  1  that  she  is  well  found  in  rigging,  gear,  &c.  j  the  figure  2  would  im- 
ply that  she  was  insufficiently  found. 

Abandonment.  In  navigation,  the  leaving  a  ship  as  dangerous  or  unsea- 
wortby  ;  a  relinquishment  of  vessel  and  cargo  to  establish  a  claim  on  the 
underwriters. 

(148) 


APPENDIX. 


Abatement.    A  discount  allowed  for  prompt  payment,  damage,  overcharge, 

or  otlier  reasons. 
Account.    A  statement  showing  the  amount  due  by  one  person  to  another 

for  goods,  cash,  &c.    Accounts  are  kept  under  their  several  titles  in  the 

Ledger,  from  which  they  are  copied  when  required. 

EXAMPLE. 

^'o   G-EORGE    N.    COMER,    Q^t- 


4^ 

/ 

Jarv.    /«*^ 

<^ot  antoutU  o^  cu>ct.  tenaeiea 

47^ 

00 

'^      Q/Z^tcdandMB  ^t  ^/fi. 

3675 

00 

4453 

00 

/^ 

<^r 

/an.  26eA 

<^ot  ^a<i^n,  on.   accou,7U            p 

47^ 

00 

^    ^a    ^. 

^Od^^n, 

'f^i  Q^eOiuaiu,  'fo . 

Accountant.  A  professional  or  official  calculator,  skilled  in  posting  and 
balancing  the  books  of  merchants  or  corporations,  and  in  investigating,  ar- 
ranging, and  detecting  errors  in  complex  accounts. 

Account  Current.  A  plain  statement  of  account,  or  bill  of  particulars, 
rendered  to  a  party,  showing  his  transactions  with  another.  —  See  examples 
in  Commercial  Computations. 

Account  Sales.  A  statement  of  particulars  or  details,  rendered  by  a  mer- 
chant to  his  consignor,  of  the  disposition  of  a  parcel  of  goods.  It  contains 
a  statement  of  the  quantities  sold,  and  the  prices  ;  also  the  charges  for  freight, 
commission,  &c.  —  Sec  example  in  Commercial  Computations. 

Acceptance.  In  commercial  transactions,  agreeing  to  the  price  or  terms 
proposed.  The  receiving  a  bill  of  exchange  or  order  in  such  a  manner  as  to 
bind  tlie  acceptor  to  make  payment.  The  word  "Accepted  "  is  usually  writ- 
ten across  the  face  of  the  bill,  with  the  name  of  the  acceptor  and  the  date 
of  the  acceptance. 

Ad  Valorem.  According  to  the  value— an  assessment  by  the  customs  for 
duty. 

Advance  Notes.  Authorized  orders  on  the  owner  or  agent  of  a  vessel,  ex- 
ecuted by  the  master,  generally  for  one  month's  wages,  given  to  the  sea- 
men on  their  signing  the  articles  of  agreement. 

Adventure.  A  term  applied  to  shipments  of  goods  to  or  from  some  par- 
ticular place. 

Advice.  Due  notice  given  in  respect  of  any  monetary  or  commercial  trans- 
action ;  notice  of  a  bill  drawn. 

Agent.    One  who  represents  a  principal,  or  buys  and  sells  for  another. 

Agio.  A  term  on  the  continent  of  Europe  lor  the  premium  or  percentage 
allowed  between  two  sorts  of  money,  one  being  of  a  superior  mintage  value 
to  tlie  otlier,  or  between  paper  and  specie. 

Assets.  The  funds  and  property  of  a  trader  ;  real  and  personal  est-ate,  debts 
due,  &c. 

13*  (1«) 


BOOK-KEEPING. 

Assignee.  An  official  manager  appointed  to  administer  an  insolTent's  es- 
tate ;  trade  assignees  are  appointed  by  the  creditors. 

ASSIGN3IENT.  Au  absolutc  transfer  of  property  ;  the  mcoking  over  of  freight, 
bill  of  lading,  &c. 

AttokxeT.  A  representative  or  deputy  ;  one  holding  a  power  or  authority  to 
act  for  another  ;  a  solicitor  employed  to  prosecute  or  defend  a  claim  or  suit 
in  a  court  of  law. 

Auditor.    One  who  inspects  or  examines  and  certifies  accounts. 

Average.  A  balance  struck  ;  a  fair  sample.  In  marine  insurance,  the  equita- 
ble adjustment  of  the  projKirtion  of  loss  which  is  sustidned  by  insurers  ;  a 
general  or  gross  contribution  made  by  difl'orent  parties  towards  a  loss  sus- 
tained by  some  for  the  benefit  of  all,  as  in  making  good  any  damage  sus- 
tained by  a  ship,  in  throwing  cargo  overboard  in  a  storm,  &c.  It  may  be 
special  or  particular,  and  customary  or  petty  average,  as  expressed  in  the 
bill  of  lading. 

Balance.  The  balance  of  an  account  is  the  difference  between  the  debit  and 
credit  side.  An  account  is  said  to  balance  when  the  debit  and  the  credit  side 
are  of  the  same  amount.  To  balance  an  account  is  to  enter  the  balance,  and 
to  add  up  both  sides,  and  then  to  bring  down  the  balance  as  a  new  amount. 

Balance  of  Trade.  The  difference  in  the  money  value  of  the  produce  or 
manufactures  received  and  exported.  If  we  receive  more  than  we  transmit, 
we  have  to  make  up  the  balance  in  specie  shipments,  which  tells  adversely 
against  the  trade  interests  of  the  country. 

Bale.  A  package  of  mercliandise  of  variable  dimensions ;  the  most  exten- 
sive articles  of  commerce  received  in  bales  being  cotton  and  w^ool. 

Ballast.  Any  heavy  material  placed  in  the  hold  of  a  ship  to  steady  it  in  the 
water.    A  ship  which  leaves  a  port  without  a  cargo  is  said  to  be  "  in  ballast." 

Bank.  An  establishment  for  the  custody  and  issue  of  money,  under  the  su- 
pervision of  a  board  of  directors,  who  meet  periodically ;  the  president, 
cashier,  and  other  officers,  being  usually  present  during  business  hours. 

Bank  Bill.  A  promissory  note  of  a  banking  company,  payable  on  demand, 
and  used  as  currency  ;  a  bank  note. 

Bank  Book.  The  pass  book  given  out  from  a  bank  to  a  depositor,  to  contain 
a  debtor  and  creditor  statement  of  his  account. 

Bear.  A  stock-exchange  term  for  a  jobber  or  dealer  who  has  an  interest  in 
depressing  prices. 

Bill.    An  account  rendered  ;  an  acceptance  ;  a  promissory  note. 

Bill  Books.    See  pages  67,  68,  69.  70,  72,  and  73. 

Bill  of  Entry.  A  note  of  the  particulars  of  goods  entered  at  the  custom 
house.  Printed  blank  forms  of  this  and  all  other  custom-house  papers 
may  be  procured  at  almost  any  of  the  stationers  for  a  few  cents,  and  tlio 
aspirant  for  counting-house  honors  is  advised  to  invest  a  trifle  in  their  pur- 
chase, and  then  make  himself  master  of  their  contents. 

Bill-Head.  A  printed  form,  with  name,  address,  or  business,  used  for  mak- 
ing out  accounts. 

Bill  of  Exchange.  A  written  order  addressed  by  one  person  to  another, 
directing  or  requesting  him  to  pay  a  ccrt.iin  specified  sum  to  the  person  in 
whose  favor  the  bill  is  drawn,  or  his  order,  at  some  day  fixed,  or  ascertain- 
able. In  mercantile  phraseology,  the  person  who  draws  a  bill  is  termed  the 
drawer;  the  person  in  whose  favor  it  is  drawn,  ihQ payee,  or  remitter;  the  per- 
son on  whom  it  is  drawn,  the  drawee  ;  and  after  he  has  accepted,  the  acceptor. 
Those  persons  into  whose  hands  the  bill  may  have  passed  previously  to 
its  being  paid,  are,  from  their  writing  their  names  on  the  back,  termed  t/»- 

(150) 


Y 


1 


k 


APPENDIX. 

dorsers ;  and  the  person  In  whose  possession  the  bill  is  at  any  given  period, 
is  termed  the  holder,  or  possessor.  Indorsements  are  always  written  on  the 
back  — that  is,  across  the  back ;  wliile  an  acceptance  is  always  written  on  the 
face,  usually  across  the  face  of  the  bill.  Formerly  it  was  the  custom  to 
write  an  acceptance  with  red  ink,  to  distinguish  it  readily  from  the  black 
ink  in  the  body  of  the  bill ;  but  that  is  rarely  resorted  to  nowadays,  ex- 
ceptiu*'-  by  very  precise  or  over-fastidious  people. 

For  °i"-n  bills  are  generally  drawn  in  sets,  or  duplicates,  (see  Set  of  Ex- 
chan'^e,°at  the  beginning  of  this  book,)  which  may  be  transmitted  by  oiffercnt 
conveyances,  in  order  that  if  any  one  or  more  should  bo  lost,  another  mrv 
arrive  safe.  Eacli  boars  the  condition  that  it  is  payable  only  while  the  others 
remain  unpaid  ;  thus  the  first  is  payable  only,  "  second  and  third  uiipaul ; 
the  second,  «  first  and  third  unpaid  ; "  and  the  third,  "  first  and  second  un- 
paid ;  "  whichever  is  first  presented  and  accepted,  the  others  become  void. 
The  party  upon  whom  a  bill  is  drawn  should  only  accept  one  of  the  set,  as 
it  is  held  that  if  he  accepts  one  and  afterwards  pays  another,  he  will  not  be 
liberated  from  the  claim  of  a  bona  fide  holder  of  the  accepted  one. 

Foreign  bills  are  those  which  arc  drawn  or  payable  in  a  foreign  country  ; 
and  for  "this  purpose,  each  of  our  states  is  foreign  to  the  others. 

Inland  bills  or  drafts  are  drawn  and  payable  at  home.  If  a  foreign  bill  be 
not  accepted,. or  be  not  paid  at  maturity,  it  should  at  once  be  protested  by  a 
notary  public.  Inland  bills  are  generally,  and  promissory  notes  frequently, 
protested  ;  but  this  is  not  necessary.  The  whole  object  of  having  a  notary 
protest  a  bill  or  note  is  to  have  the  evidence  of  his  having  so  done—  he  be- 
ing a  legal  officer  duly  commissioned  for  the  purpose. 

A  person  who  takes  up  a  bill  or  note  before  it  is  due,  that  is,  before  the 
last  day  of  grace,  (sec  Days  of  Grace,)  buys  it  j  he  does  not  pay  it.  A  bill  or 
note  payable  on  demand,  or  pay  so  much  money  without  any  time  being 
mentioned,  means  payable  upon  presentation,  and  no  grace  is  allowed.  If  it 
was  payable  ten  days  after  demand,  that  would  mean  ton  and  three  days' 
crrace,  so  that  if  the  demand  was  made  on  the  1st,  it  would  in  fact  be  payable 
on  the  14th.  If  the  last  day  of  grace  falls  on  a  Sunday,  or  a  legal  holiday, 
the  bill  is  due  the  day  previous.  But  if  there  be  no  grace,  (as  if  it  were  writ- 
ten so  many  days  without  grace,)  and  the  bill  or  note  falls  due  on  a  Sunday, 
or  other  holiday,  it  is  not  payable  until  the  next  day. 

Bills  and  notes  payable  on  demand  should  be  presented  for  payment  with- 
in a  reasonable  time.  If  they  are  written  "  with  interest,"  this  strengthens 
the  indication  that  they  were  intended  to  remain  for  a  time  unpaid  and  unde- 
manded  But  to  hold  indorsers,  they  should  be  presented  within  whatever 
time  circumstances  may  make  a  reasonable  time  ;  and  this  is  such  a  tunc  as 
the  interests  and  safety  of  all  concerned  may  require ;  it  may  be  a  few  days, 
or  even  weeks.  In  Massachusetts,  by  statute,  they  must  be  presented  withm 
sixtv  days  When  a  bill  is  refused  acceptance  or  payment,  notice  of  such 
refusal  must  immediately  be  given  to  any  party  to  it,  to  whom  the  holder 
wishes  to  have  recourse.  ,  ,  ^  u 

Notice  of  dishonor  does  not  mean  mere  knoioledge,  and  a  party  may  be 
entitled  to  a  formal  communication  of  the  dishonor  of  a  bill,  though  it  may 
be  clearly  shown  that  he  knew  it  would  be  dishonored.  If  a  party  to  whom 
notice  is  to  be  given  is  not  to  be  found,  after  diligent  inquiry,  a  letter  through 
the  post  office  to  his  last  knoxvn  address  is  sufficient,  and  it  is  sufficient  if 
he  resides  so  far  distant  that  it  could  not  possibly  reach  him  for  months 
If  there  are  several  indorsers,  and  you  only  desire  to  give  notice  to  the  last 
one  he  may  give  noxice  to  the  next  before  him  by  any  mail  on  the  day 
•  after  he  receives  notice,  and  so  may  each  of  the  parties  receiving  notice. 

(151) 


1 


♦i 


BOOK-KEEPTXG. 

When  the  \^rd  "  month"  is  used  in  specifying  the  time  of  payment,  It  is,  as 
in  other  mercantile  contracts,  to  be  understood  of  a  calendar  month,  not  a 
lunar  month. 

A  bill  on  London  will  pay  a  debt  in  any  part  of  Great  Britain  ;  so  a  bill  on 
New  York  will  pay  a  debt  in  almost  any  of  tlie  cities  or  towns  in  the  L'uited 
States  ,  London  and  New  York  bein^'  the  great  monetary  centres  of  their 
respective  countries. 

Bills  of  exchangre  serve  three  useful  purposes  in  commerce.    Ist.  A  bill 
puts  a  debt  in  a  tan^'ible  form  ;  for  example,  instead  of  Icavinj;  a  debt  to  be 
paid  at  an  indefinite  period,  so  as  to  protract  its  settlement,  if  it  be  put  in 
the  shape  of  a  promise  to  pay,  tlie  creditor  possesses  the  power  to  compel 
payment  at  a  certain  and  not  very  distant  period.    2d.  A  bill  is  a  negotiable 
instrument.    If  the  parties  be  trustworthy,  it  may  bo  discounted  for  cash  ; 
and  thus,  while  the  creditor  will  receive  his  money,  less  a  trifle  for  dis- 
count, the  debtor  is  left  unmolested  till  the  final  day  of  payment.    3d.  A 
bill  is  a  convenient  representative  of  money,  which  may  be  sent  from  place 
to  place  in  a  letter ;  and  if  accidentally  lost,  its  payment  may  be  stopped, 
and  a  new  bill  fonvarded  to  its  destination. 
Bill  of  irE.VLxn.    An  official  document  required  in  some  countries  to  bo 
produced  by  the  master  of  a  vessel  coming  from  a  port  suspected  to  be  un- 
healthy, and  certifying  as  to  the  condition  of  the  passengers  and  the  crew ; 
it  is  either  a  clean  bill  of  health,  or  a  foul  bill. 
Bill  of  Ladln'g.  -A  receipt  (usually  a  printed  form  filled  up  with  writing) 
given  by  the  master  of  a  vessel  for  goods  that  have  been  shipped  with  him. 
Three  copies  arc  usually  drawn  out,  one  for  the  use  of  the  master,  another 
to  be  retained  by  the  shipper  of  the  goods,  and  the  third  to  be  sent  to  the 
party  to  whom  the  goods  are  forwarded.    The  shipper  gives  the  party  to 
whom  he  sends  the  bill  the  riglit  to  receive  the  goods.    A  bill  of  lading, 
like  a  bill  of  exchange,  may  be  indorsed  over  to  another  person,  who  thus 
acquires  the  right  to  the  goods. 
Bills  P.vy.vble.    A  title  given  to  notes,  bills,  and  other  paper  claims  out- 
standing against  an  individual  or  firm. 
Bill  of  P.vrcels.    A  list  or  account  of  goods  sold,  given  to  the  purchaser 
by  tlie  seller  at  the  time  of  sale,  containing  a  specification  of  the  quantities 
prices,  date,  and  other  particulars.  ' 

EXAMPLE. 

^au^^  y  GEOROE    N.  COMER, 

139  Washingtox  Street,  Boston.  . 


Jan,  S 


50  ^nut.  Tf^.  .^i^c/  ^Uei  @  03. 50 ,  /.^5 
50   //  //      ^ot^      //  2.6S^\'f3'f 

50   //       ^/ue  ,^t:c^    // 


o  o, 


^.£d  //i> 


50    'f  //        y/%e     //  9.3f 

400    ^t.  ^.  e^en<,,  ^.q4^.  ^:,  (9^n, 
(^ac^^^^OO,  ^^00,  ^^00,  ^iOO  @  .75 


(152) 


300 


B5 
50 
75 


7^7 


50 


- 


t 


APPENDIX. 

Bills  Receivable.  The  unpaid  notes,  bills,  &c.,  claimable  by  an  individual 
or  firm. 

Board  of  Trade.  A  committee  of  merchants,  or  influential  manufacturers 
and  traders,  appointed  in  a  port  or  inland  town,  to  take  cognizance  of  mat- 
ters afl-ecting  the  general  or  special  interests  of  trade,  to  memorialize  the 
government,  to  difl'use  useful  information,  &c.  [til  the  duty  is  paid 

Bonded  Goods.    Imported  goods  deposited  in  a  government  wareliousc  un- 

BooK  Di- iJT.  A  charge  for  goods  supplied,  or  work  and  labor  done,  entered 
in  tlie  books  of  a  tradesnuin  or  professional  man. 

Botto:mu  V  Bond.  A  mortgage  or  pledge  of  a  ship  as  security  for  the  repay- 
ment of  money  advanced  to  tlie  master  or  owner,  for  the  purpose  of  ena- 
bling him  to  prosecute  his  voyage.  If  the  ship  be  lost  the  lender  loses  the 
whole  of  his  money  ;  but  if  the  ship  arrives  safely,  he  is  to  receive  the  mon- 
ey lent,  with  the  interest  or  premium  stipulated,  although  it  may  exceed  the 
legal  rate  of  interest.  The  tackle  of  the  ship  is  also  answerable  for  the 
debt,  as  well  as  the  person  of  the  borrower.  When  a  loan  is  made  upon  the 
goods  shipped,  the  borrower  is  said  to  take  up  money  at  responiUntia,  as  he 
is  bound  personally  to  answer  the  contract. 

Bourse,  a  name  given  in  France,  and  some  other  parts  of  the  continent  of 
Europe,  to  the  money  market,  or  stock  exchange,  where  the  merchants  and 
agents  de  change  meet  for  monetary  transactions. 

Brokerage.  The  percentage,  commission,  or  consideration  paid  to  a  person 
termed  a  hrol:er,  for  buying  or  selling,  and  for  making  advances,  &c. 

Broker's  Note.  A  voucher  delivered  by  a  broker  to  his  principal,  giving 
particulars  of  the  sale  or  purchase,  price,  &c. 

Bulk.    Dimensions ;  the  cargo  of  a  ship  when  stowed. 

Bull.  A  stock-exchange  term  for  a  jobber  or  dealer  who  has  an  interest  in 
the  rise  of  the  market. 

Bullion.    Uncoined  gold  or  silver  in  the  mass. 

Cambist,    a  banker ;  one  well  versed  in  exchanges  and  foreign  moneys ;  a 
trafficker  in  bills.    Also  applied  to  a  book  descriptive  of  moneys,  wei<^hts 
and  measures,  of  diflerent  countries.    The  best  known  work  on  this  subject 
is  "  Tate's  Cambist."  •• 

Capital.  The  net  amount  of  property  belonging  to  a  merchant  after  deduct- 
ing the  debts  that  he  is  owing.  This  term  is  more  strictly  applied,  either  to 
the  sum  of  money  which  he  has  embarked  in  his  business  at  first,  or  the 
available  sum  he  may  afterwards  have  at  command  for  carryino-  it  on 

Cash  Book.    (See  pages  1G2, 163.)  " 

Cast.    To  cant,  or  cast  tip,  means  to  add  together. 

Change.  To  barter  ;  to  give  one  kind  of  money  for  another ;  also  an  abbre- 
viated mode  of  designating  an  exchange,  or  place  where  merchants  and  men 
of  business  assemble. 

Check,  a  Avritten  order  for  payment  to  bearer  (sometimes  it  is  made  paya- 
ble to  "  order,"  in  which  case  the  party  in  whose  favor  it  is  drawn  must  in- 
dorse it)  of  a  specified  sum  of  money  on  some  bank  or  individual,  bv  a 
depositor  or  person  having  the  necessary  funds  or  credit.  —  To  check  a  book 
or  account,  is  to  examine  it  and  prove  it  correct,  or  make  it  so. 

Check  Book.  A  printed  book  of  blank  forms,  for  writing  orders  or  drafts 
on  a  banker,  for  money  lodged  to  his  credit  by  the  drawer. 

Clearance,  a  document  from  a  custom-house  officer,  or  other  qualified  per- 
son, permitting  a  ship  to  depart  on  her  voyage. 

Clearing  House.  An  establishment  for  the  convenience  of  certain  bank- 
ers, where  drafts,  checks,  bills,  and  accounts  on  each  other  are  mutually 

(153) 


*l 


BOOK-KEEPING. 

exchanged  without  the  individual  presentation  of  each  at  the  banks,  and  a 
balauce  struck  and  agreed  upon  is  settled  in  a  few  minutes  with  an  incredi- 
bly small  amount  of  specie. 

Coin.  Pieces  of  metal,  most  commonly  gold,  silver,  or  copper,  stamped  by 
authority,  and  in  many  countries  made  a  legal  tender  for  their  respective 
values,  when  not  exceeding  certain  specified  amounts. 

CoMMis.siox.  A  charge  given  or  undertaken  ;  a  percentage  allowed  to  agents 
or  iactors  by  their  employers  upou  business  transactions. 

Company.    A  partnership  in  trade. 

Composition.  The  commercial  name  for  an  arrangement  or  legal  compro- 
mise with  creditors,  made  by  a  debtor  who  is  unable  to  pay  his  liabilities  in 
full,  a  portion  of  the  debt  being  taken  in  lieu  of  the  full  demand. 

Consign.    To  send  goods  to  an  agent  or  factor  for  sale. 

Consignee.    Aperson  who  receives  goods  in  trust, ortodisposeof  for  another. 

CoNsous.  The  leading  English  funded  government  security  ;  a  fund  formed 
by  the  consolidation  of  different  annuities,  and  on  which  3  pier  cent,  interest 
is  now  paid.  It  forms  the  largest  jwrtion  of  the  public  funds,  and  in  it  are 
absorbed  from  time  to  time  other  public  securities.  It  is  that  stock  in  which 
are  most  speculation  and  jobbing  among  the  dealers  ;  hence  tlfe  price  at  wliich 
it  stands  generally  regulates  the  rise  and  fall  of  other  public  securities. 

Consul.  The  commercial  representative  of  a  state  in  a  foreign  country, 
whose  duty  is  to  protect  trade  and  superintend  commercial  transactions  of 
shippers,  merchants,  and  others. 

CORPOR.VTION.  A  body  politic,  or  incorporated  association,  with  a  capital 
formed  of  shares  or  contributions  to  carry  on  any  undertaking  requiring 
large  funds,  such  as  banking,  insurance,  railways,  manufacturing,  &c. 

The  book-keeping  of  a  corporation,  when  thoroughly  understood,  is  quite 
as  simple  as  that  of  an  individual  or  firjn  ;  the  only  difference  being  that,  from 
the  more  extended  operations,  there  may  be  more  detail.  For  example,  we 
will  suppose  that  five  persons,  A,  B,  C,  D,  and  E,  desire  to  form  a  corpora- 
tion for  manufacturing  purposes,  the  capital  stock  to  be  $100,000,  consisting 
of  one  thousand  shares,  of  $100  each.  A  subscribes  for  ."iOO  shares,  or  $30,000 ; 
B,  250  shares ;  C,  250  shares  ;  D,  100  shares  ;  E,  100  shares.  This  subscription 
list  is  entered  in  the  Day  Book,  the  effect  of  which  in  posting  is  to  debit 
each  of  the  subscribers  with  the  amount  of  his  subscription,  and  to  credit 
capital  stock  with  the  whole  amount.  The  company,  having  obtained  their 
charter,  proceed  to  business  by  making  a  call  of  twenty-five  per  cent,  per 
share.  As  these  instalments  are  received,  cash  is  debited,  and  each  of  the 
partners  from  whom  it  was  received  are  credited.  Tlie  business  now  goes 
on  the  same  as  any  private  undertaking  would  —  the  buying  of  machinery 
and  raw  material,  the  paying  of  operatives,  and  the  selling  of  the  article 
produced.  Eventually  the  whole  amount  of  the  capital  stock  is  paid  in ; 
then  tlie  stockholders'  accounts  are  ruled  off  and  the  money  value  given  up, 
it  being  represented  by  the  cash  received  and  the  account  of  capital  stock  ; 
the  number  of  shares  only  is  brought  down,  thus :  — 


Dr. 


A. 


Cr. 


300  Shares 

$30,000 

00 
00 

Cash  Ist  Instalment 
Do.  2d         " 
Do.  3d         " 

• 

Shares 

$7500 

7500 

15,000 

00 
00 
00 

(IM) 

$.'«),000 

$30,000 

00 



No.  of  Share*. 

No.  of  Sharet. 

300 

'" 


., 


.1 


APPENDIX. 

That  is,  he  owns  300  shares  in  the  capital  stock  of  this  company,  whether 
they  are  worth  more  or  less  than  the  par  value.  When  the  accounts  have 
arrived  at  this  stage,  it  is  usual  to  transfer  them  to  a  "  Stock  Ledger,"  in 
which  no  other  accounts  are  introduced.       ^ 

If  A  should  sell  fifty  of  his  shares  to  G,  the  transfer  would  have  to  be 
made  through  the  clerk  or  other  proper  officer  of  the  corporation,  who 
makes  the  record  only  ;  he  need  not  know  any  thmg  about  the  amount  of 
consideration  paid  by  G.  The  effect  of  this  is  to  debit  A  fifty  shares, 
(leaving  him  250,)  and  to  credit  G,  with  whom  an  account  is  now  opened, 
with  fifty  shares  ;  and  so  the  business  goes  on,  the  profit  or  dividend  being 
apportioned  pro  rata  among  all  the  holders  of  the  stock  at  the  time  of 
declaring  the  dividend. 

Coupon.  An  order  or  warrant  for  the  payment  of  periodical  di\'idends  on 
railway  or  other  public  stocks,  bonds,  or  debentures. 

Credit.  To  give  credit,  or  to  sell  on  credit,  is  to  sell  goods  on  trust;  that 
is,  without  requiring  the  person  buying  to  pay  for  them  at  the  time.  In 
book-keeping,  to  credit  a  person  is  to  enter  his  name  on  your  books,  giving 
him  credit  for  the  goods  or  .cash  received  from  him. 

Creditor.  A  person  to  whom  another  is  in  debt  for  money  or  goods.  When 
you  receive  goods  from  a  person  without  paying  for  them  at  the  time,  he  is 
said  to  be  your  "  creditor"  for  the  amount. 

Currency.  Taper  money  and  coin,  established  as,  and  passing  for,  the  cir- 
culating medium  of  a  country.  The  following  is  a  statement  of  the  ordina- 
ry currencies  of  the  chief  countries :  United  States,  Spain,  Mexico,  Chili, 
Peru,  Brazil,  dollars  of  one  lumdred  cents  ;  Great  Britain,  sovereigns  or 
pounds  of  twenty  sliillings ;  France,  Belgium,  and  Switzerland,  francs  of 
one  hundred  centimes  ;  Prussia,  thalers  of  thirty  silver  groschen,  (one 
groschen  equal  to  twelve  pfennings ;)  Austria,  florins  of  sixty  kreutzers ; 
Kussia,  roubles  of  one  hundred  kopecs ;  Hamburg,  marks-current  of  six- 
teen shillings  ;  East  India  Company's  territories,  rupees  of  sixteen  annas  j 
in  the  Canadian  currency,  £1  sterling  is  equal  to  £1  4b.  6d. 

Customs.  The  duties  or  taxes  imposed  upon  goods  entering  or  going  out  of 
the  country. 

DAY'S  OF  Grace.  The  period  allowed  by  law,  or  custom,  beyond  the  fixed 
day  of  payment,  to  meet  an  acceptance  or  note.  Days  of  grace  vary  in 
almost  all  mercantile  to^vns  and  countries ;  but  the  tendency  of  modern 
legislation  is  to  abolish  them  altogether,  —  and  with  great  propriety.  Is  it 
not  an  absurdity  for  a  rational  man  to  give,  and  another  rational  man  re- 
ceive, a  written  document  representing  that  in  sixty  or  any  number  of  days, 
months,  or  at  sight,  the  promisor  will  pay  a  given  sum,  when  neither  of 
the  parties  ever  intended  any  thing  of  the  kind .'  If  there  must  be  three 
days  more  time,  why  not  state  it  so  at  once.  In  the  twenty  years'  experi- 
ence I  have  had  as  a  teacher  of  book-keeping,  there  has  been  no  one  thing 
which  has  required  such  continued  iteration,  to  establish  it  in  the  minds  of 
students,  as  this  matter  of  days  of  grace.  In  the  United  States  and  Great 
Britain  there  are  three  days.  In  France,  and  wherever  the  French  code  has 
been  introduced,  there  are  no  days  of  grace. 

Debenture.  The  certificate  given  at  the  custom  house  to  the  exporter  of 
goods,  entitling  him  to  receive  payment  of  the  drawback  allowed  on  goods 
(previously  imported)  being  exported ;  a  certificate  of  mortgage  or  loan  on 
railway  or  other  public  works. 

Debit.  To  debit  a  person,  in  book-keeping,  is  to  enter  his  name  in  your 
books,  charging  him  for  the  goods  or  cash  he  has  received  from  you. 

(15.5) 


I 


BOOK-KEEPING. 


APPENDIX. 


Debtor.  A  persou  who  is  in  debt  to  another  for  money  or  goods.  When  a 
person  receives  goods  from  you  without  paying  for  them  at  the  time,  he  is 
said  to  be  your  '•  debtor  "  for  tlic  amouut. 

Del  Ckedeue.  Au  Italian  commercial  term,  implying  a  guarantee  for  the 
solvency  of  a  purcliaser. 

Discount.    See  AitATE>tENT.    Also  Commercial  Computations,  page  117. 

Dividend.  When  a  person  becomes  unable  to  pay  his  debts,  and  makes  a 
composition  with  his  creditors,  he  may  agree  to  pay  them  seventy-five  cents 
on  the  dollar,  in  three  equal  instalments,  at  intervals  of  two  or  three 
mouths.  Each  of  these  payments  is  termed  a  "  dividend."  This  term  is  also 
applied  to  the  profits  divided  among  the  proprietors  of  railway  and  other 
companies. 

Draft.  A  check  or  order  for  money  on  a  banker  or  other  person,  on  demand 
or  at  a  specified  time,  and  is  usually  negotiable  by  indorsement  the  same  as 
a  promissory  note.  —  See  form  at  the  beginning  of  tliis  book. 

Due  Bill,  or  Loan  Note.  An  acknowledgment  of  indebtedness,  and  a 
jiromise  to  pay  to  the  particular  party  named.  It  is  not,  therefore,  negotia- 
ble. —  See  form  at  the  beginning  of  this  book. 

Dutch  Auction.  In  common  auction,  the  highest  bidder  by  competition  is 
the  purchaser ;  but  according  to  the  process  of  sale  called  Dutch  auction, 
the  article  is  put  up  at  a  certain  nominal  price,  which  is  gradually  lowered ; 
and  the  first  who  speaks  and  offers  the  sum  mentioned  by  the  auctioneer  is 
at  once  proclaimed  the  purchaser. 

Entry.  The  record  made  in  a  merchant's  book  of  any  business  transaction ; 
the  lodgment  of  a  ship's  papers  in  the  custom  house  on  arrival,  when  per- 
mission to  land  cargo  is  obtained. 

Exchange.  The  balance  of  money  of  different  countries,  each  of  which  has 
a  certain  regulated  par  of  excliaiige  j  a  place  of  public  resort,  in  commer- 
cial cities,  where  merchants  meet  to  transact  business ;  the  bartering  of  one 
commodity  for  another.  —  See  Commercial  Computations. 

Executor.  A  person  appointed  by  the  testator  to  administer  to  his  estate,  to 
carry  into  force  the  appropriations  of  his  will  and  testament,  after  his  decease. 

Exports.    Goods,  wares,  or  manufactures  transmitted  abroad. 

Failure.    A  commercial  term  for  the  suspension  of  payment. 

Firm.  A  copartnership ;  a  house  of  business ;  the  abbreviated  title  under 
which  a  trade  is  conducted,  or  a  body  of  partners  is  known. 

Folio.    A  word  frequently  used  instead  of  page  in  mercantile  books. 

Forwarding  House.  Forwarding  merchants.  Parties  who  attend  to  the 
receipt  and  transmission  of  meroliandlse  and  produce,  by  railways  and  ca- 
nals, from  the  interior  to  the  coast,  or  to  market  towns,  and  vice  versa. 

Gross.  In  merchandise  the  whole  weight  of  goods,  including  box,  package, 
baling,  &c. ;  the  number  of  twelve  dozen,  wliich  is  the  small  gross ;  the 
great  gross  is  twelve  times  twelve  dozen. 

Guaranty,  Guarantee.  An  engagement  to  perform  some  act,  or  pay  some 
debt,  in  case  another  person  primarily  liable  fails  to  do  so. 

Importer.  One  who  receives  goods,  produce,  manufactures,  or  merchan- 
dise from  abroad. 

Indorser.  One  who  writes  his  name  on  the  back  of  a  promissory  note,  or 
bill  of  exchange,  and  thus  makes  himself  responsible  for  its  payment. 

(156) 


Indorsements  are  either  general,  special,  or  restrictive.  A  general  in- 
dorsement, or,  as  it  is  termed,  an  "  indorsement  in  blank,"  is  merely  writing 
tiie  name  without  any  other  words.  A  special  indorsement  is  making  it 
over  to  some  special  person,  as,  *'  Pay  to  tlie  order  of  the  casliier  of  tho 
Bank  of  Commerce,"  with  the  name.  Then  the  cashier  would  have  to  in- 
dorse the  paper,  and  he  could  either  do  it  in  blank  by  merely  writing  his 
name,  or  specially  by  making  it  payable  to  the  order  of  some  one  else,  or 
to  some  individual  only ;  in  which  latter  case  it  would  be  a  restrictive  in- 
dorsement, restraining  the  negotiability  or  transferability  of  the  paper. 

It  has  become  a  common  custom  with  some  merchants  to  have  their  notes 
made  payable  to  the  purchaser's  own  order,  who  has  therefore  both  to  sign 
and  indorse  the  paper  ;  the  object  of  this  being  to  enable  the  merchant  to 
dispose  of  the  paper  without  having  to  put  his  own  name  upon  it.  Where 
an  indorser  does  not  wish  to  be  held  responsible,  he  writes  before  his  name 
the  words  "  without  recourse  to  me  ;  "  but  the  very  fact  of  such  an  indorse- 
ment is  calculated  to  throw  doubt  upon  the  paper,  and  to  avoid  this,  the  note 
is  made  payable  to  the  signer's  own  order. 

Insolvent.    Incompetent  to  pay  all  just  demands ;  in  pecuniary  difUculties. 

Insurance.  A  contract  by  which  certain  persons  or  insurance  offices  engage 
to  make  good  to  the  party  insuring,  any  loss  he  may  sustain  of  ships  or 
their  cargoes  at  sea,  or  of  houses  or  goods  by  fire.  The  parties  who  take 
upon  themselves  the  risk  are  called  the  insurers,  or  underwriters  ;  the  per- 
son protected  is  called  the  insured  ;  the  sum  paid  to  the  insurers  is  called 
the  liremium ;  and  the  paper  on  which  the  contract  is  written  is  called  the 
policy  of  insurance. 

The  books  of  a  stock  insurance  company  are  kept  upon  the  same  general 
principles  as  those  of  any  other  corporation. 

The  books  of  a  mutual  insurance  company  —  that  is,  an  association  wliere 
the  members  mutually  insure  each  other,  sharing  the  risk  and  the  profit 
among  themselves  —  require  to  be  kept  with  great  nicety  of  discrimination, 
in  order  to  do  exact  justice  to  all  the  members.  In  my  capacity  of  account- 
ant I  have  frequently  been  called  upon  to  examine,  advise,  and  in  some  iu- 
Btanccs  wind  up,  the  affairs  of  mutual  insurance  companies  ;  and  the  result 
of  my  investigations  confirms  the  belief  that  the  mode  of  doing  business 
in  the  large  majority  of  cases  is  any  thing  but  mutual.  I  am  satisfied  that 
there  are  not  a  dozen  mutual  insurance  companies  in  New  Engljxnd  whose 
books  would  bear  critical  examination  for  either  accuracy  or  equity.  The 
"State,"  and  the  "  Mechanics'  Mutual"  offices  of  Boston,  and  a  few  others, 
are  honorable  exceptions. 

Where  cash  and  deposit  notes  are  taken,  they  are  each  debited,  and  an 
account  opened  with  the  "month"  in  which  they  were  received,  which  is 
credited  for  the  amount ;  so  that  a  new  account  would  have  to  be  opened 
for  every  month,  beginning  with  the  first  and  continuing  as  long  as  the 
oflSce  continues  to  issue  policies  and  receive  premiums. 

As  mutual  offices  insure  for  terms  of  from  one  to  seven  years,  it  follows 
that  after  the  first  seven  years  the  account  of  one  month  is  every  month 
thereafter  falling  out  and  being  balanced  up.  The  expenses  of  the  office 
are  periodically  charged  off  to  each  of  the  months  having  a  credit  pro  rata 
to  the  amount  of  such  credit.  Any  losses  which  may  occur  are  also 
charged  off  to  the  months  in  the  same  way.  For  example,  suppose  that  in 
the  month  of  January,  1853,  there  was  received  in  cash  and  deposit  notes 
$1000,  which  was  credited  to  the  account  of  "January,  1853;"  that  from 
time  to  time  there  has  been  charged  to  that  month  for  expenses,  losses,  pol- 
icies expired  and  cancelled,  in  the  whole,  $487  ;  it  will  be  seen  that  in  the 
14  (157) 


I 


BOOK-KEEPING. 

month  of  January,  1860,  all  the  policies  will  have  expired,  and  that  there  Is 
a  dividend  of  $513  to  be  apportioned  ;>ro  rata  among,  and  returned  to,  those 
members  having  policies  (gniuted  in  January,  185:})  at  the  end  of  December, 
1859. 

One  great  advantage  by  this  plan  is,  that  whenever  a  member  wishes  to 
surrender  his  policy,  its  exact  value  can  be  ascertained  at  once.  The  whole 
of  the  policies  issued  in  any  one  month  being  at  all  times  during  their  ex- 
istence worth  exactly  the  same  per  cent,  of  their  amount. 

Interest.    A  right  or  share  in  a  business  or  undertaking  ;  use  of  money.— 
See  Commercial  Computations. 

Invoice.    A  bill  of  parcels  containing  particulars  of  quality,  quantity,  and 
price  of  goods  remitted  to  an  agent  or  factor  for  sale,  or  on  approval. 

EXAMPLE. 

Invoice  of  21  Cases  Merchandise,  marked  and  numbered  as  per  margin,  shipped 
on  board  the  Caledonia,  Capt.  Lott,  by  Ja>ies  Chadwick,  Manchester,  on 
account  and  risk  of  George  N.  Comer,  Boston. 


J 

GNC 
C 

♦ 
39S59 

250  pieces  Long  Cloth  @  11/ 
220      "      72  Shirtings      13/ 
300      "        f  Cambrics    7/ 
900      "        I^Jacconets   9/6 

rhnrjrps. 

Entry  and  Dues  2/,  Bill  Lading  1/6 

Carriage,  Porterage,  Cartage,  &c. 

Insurance  on  £850  @  21/6 

Policy 

Forwarding  .'^2/0,  Portage  3/6 

Commission 

To  be  paid  in  Boston  at  $4.84  per  £. 

E.  and  0.  E.    Manchester,  4th  Feb.,  18—. 

£ 

137 
143 
105 

427 

10 
9 

1 
1 

B. 

10 
0 
0 

10 

3 
2 
2 
5 
16 
1 

d.| 

0 
0 
0 
0 

£ 

6 
9 

0 

6 

1 

£ 

813 

22 
835 

0 

11 
11 

0 

3 
3 

Invoice  Book.  The  book  in  whicli  are  copied  the  originals  of  bills  and  in- 
voices of  merchandise  purchased  or  received.  —  See  form,  page  118. 

Lease.    To  let  for  a  term  upon  rental. 

Legal  Tender.  Tlie  authorized  coins  or  payment  that  can  be  lawfully 
offered  and  received  in  a  country.  A  legal  tender  must  be  for  the  exaci 
amount  in  cash ;  tendering  a  larger  sum,  with  a  request  for  change  back, 
is  not  a  legal  tender.  Tn  Franco,  silver  is  the  legal  tender.  In  the  United 
States,  gold  and  silver  ;  but  a  person  cannot  be  compelled  to  receive  more 
than  five  dollars  in  value  of  either  half  or  quarter  dollars,  or  ten  or  five  cent 
pieces,  nor  more  than  thirty  cents  of  three  cent  pieces,  or  twenty-five  cents 
in  coppers. 

Lessee.    One  to  whom  a  lease  is  given. 

Letter  of  Atforney.  A  power  or  legal  authority  to  act  for  another,  and 
to  proceed  with  his  affairs.  The  power  may  be  special  for  a  particular  pur- 
pose, or  general. 

(158) 


t 


» 


J 


APPENDIX. 

T  tr^Tv-T.  OF  credit     a  letter  or  order  sent  by  one  merchant  or  banker  to 
Letter  of  <^redii.    a  ii^n-^i  v.^„-,,r  of  the  letter  a  certain  sum 

:Ss,in^rSfarc^^irLrsr;^s::^ 

X  ^^f  ^^l^l^'^^^^y^a^mci;:  ^^a  to  relatives  or  creditors,  after 

LIFE  A.^LUANCE     ^^^^^^  !^'/    .,„,i^,^  p^id  during  life  to  an  assurance 

X'vivintup/rcenlS    amount  according  to  age,  health,  or  risk  of 

office,  varying  m  P^"^*^"    -=        .      ascertaining  the  expectation  of  hie,  ac- 

accidental  death.    A  fl^"^"  5"*V  K^.f  ^«  to  tike  the  a-e  from  the  number 

/.<^,.Hino•  tn  the  Northampton  tables,  is  to  taKC  tuc  a^t.  nui"  " 

cording  to  mc  Dunuaini^  x"\\up  of  a  nolicv  is  generally 

Uot™.VT.o*    An  Hrrangemcnt  or  settlement  of  the  affairs  of  a  merchant  or 

^Zfr  ;rrn'ir:Xe''o''ra'Sof  rrrLoodon,  nsea  ..  the  society 

^^■^^^L^^rtf  Marine  in^re^^ 
only  a  centre  pomtm  the  met^^^^^^^  ^  ,^  ,.^^ 

the  place  to  «lch  <^'f  ^  ^P":™' °  4.  ^<,Vu  information  is  exhibited  in 
warded  from  all  P^f'^f^f^^HonTUc  lists  made  up  and  exlublt^d  at 
one  of  the  r»oms  or  pnbhc  J^P;«  ""^'./^'^i.^^ibers  and  the  pnblic,  famish 
^Si'ctk';mSrforthrn's:';r  merchants  and  shippers  of  goods  all 

over  the  world. 
MANIFEST.    A  document  containing  a  speciflc  description  of  a  rt^^  wttha  "»« 
of  the  names  of  the  passengers,  and  of  the  packages,  &c.,  forming  her  cargo. 

Ill-  p?orr/"rrurrsrwMrg":s:- produce  a«er  ^..r 

of  goods  and  packages. 
O.O.HS.    An  order  .a  ^;^-J^ -:^2::S^^:^.:^, 

Lro;^trs;tafn\rm";ct.ds~^ 

i::hr;^hreTr«™Wei-"  ?:r^^'^r;r  received;-  "amt.,"  for 
«'  amount ; "  "  rec'd,"  for  "  received,"  &c. » 

--ner\t:;;r^s-:nrSctr"r^^^^^^^ 

Ei^:''^:^^:^':::^^  .o  carry  on 

a  business,  they  are  said  to  be  in  partnership.  Commercial  Com- 

Percentage.    a  rate  or  commission  per  hundred. -See  Commercial  i.om 

PETT?' cTsH  BOOK.    A  book  for  entering  small  receipts  and  Payments  -hich 
are  tranXred  to  the  "  Cash  Book,"  either  daily,  weekly,  or  monthly,  ac- 

P^Jcv.'  T\f  cTrSfilrLued  to  an  insurer  by  a  Ufe,  fire,  or  marine  insur- 

Prfmium''"a  rate  paid  for  insurance  ;  something  given  to  invite  a  loan  or 
bargin;  an  advance  paid  by  purchasers  of  stock,  shares,  exchange,  &c. 

above  the  par  price. 

(150) 


! 


BOOK-KEEPING. 
^nler^SSrj^.t.^rtc^''"'  ""  "'  «>»  '-ta-"  ™r.et  price,  of  t,e  d.,  f„, 
cargoes.  "'"^   ""HBtancc   In   loaUiDj  an^   imloadin.^ 

«  foreign  „ge„,  or  r^tXnjrrilr '?;    '»  «■"-"»»  »«"" 
pledge  Its  credit  and  authority,  ,vhici^  i,  cSIhT'^  '°  "S"  «"■ '  a™.  »r  to 

Pko  foajiA.    For  the  sate  of  form  <*"»<' J"-oc«ro<i„». 

Pko.missORT    NotF       a  not 

g»gement  in  writing  to  pay  a  defi^^*'"™"'"'^""  i-dobtednesB  ;  an  en- 

therein  named,  or  to  his  order  ort  «,e  f^:''  "  °  "°"'  '•"■"»«'.  to  a  irson 

^^.^^..ade  assignahie  and  ^^r^l^^l^^:^^-^^ 

having  been ™'l:.:d"-SVorr.Ute  ^"^'"  ™"""«  »f™°"e70r 
Keclamatii.x.    Demand  '*^"""''S  of  this  boolt. 

K."'S!-^?o  rutTararuT.."^  ^"'""  '-»'««'• 

Sales  Book.  -  See  form,  pa-e  74. 

f  ^"'A''''''''\  ^°  inventory  or  rat«lo^e 

'mZ^y.  *'«""'°  '--'■■  —  coiu.  or  hnliion,  ..  opposed  to  p.pe, 

^^r^-    ^"  "^"■"  ™-<-od.  dot«-,s  or  explanatory  particular,  fur- 
Statute  of  Lnrir  vtiovq     i«  „»  • 

l^K.  's';;r.L\xr;to?^-™-'-'--<'"<  -capita.. 

Ta-Vtlrr '■""""•    ^  ^''-"'-'  --'-"on  and  inventory  of  goods,  or  stock 
STOR.VOE.    A  charge  for  warehousing  goods. 

^c,?.,  ofottrp^r^,'^^  ri:rgr,Trr'°""-f°^  «•=  -'»"'■«  °f « •».. 

.on.of-,;argo:r:rL"™'Tonn"°[s'."^''''rr"'°''"^'''^»™^-f 

more  generally  by  weio^ht    a  tolh^f  It  ';""""'"■<'  sometimes  by  bulk,  but 
ton  by  weight'^ei,,,i„"fi\'°„V,JJ>"^ktaMge,,,«,,o«  cubic  fee,,  and  . 

employed  by  ship-builders,  wherebv  7hll^'  ?  """  "'""'"  formula! 

ength,  breadth,  and  dcpth'„7,he  ^es  el  ■  b,rf  "/»'""•""'  from  the 

the  real  tonnage,  or  the  tn.e  .mounTr^^VS  T^.tr^^rjZ". 

(160)  '  ' 


. 


APPENDIX. 

because  two  vessels  exactly  equal  in  length,  breadth,  and  depth,  measured 
as  those  dimensions  usually  are,  may  have  very  different  internal  capacity, 
owing  to  different  curvatures  of  the  hull.  A  ship  will  sometimes  carry 
more  than  her  registered  tonnage  indicates,  sometimes  less  ;  and  therefore 
the  word  "  tonnage  "  is  to  be  regarded  only  as  a  rough  approximation  to 
the  burden  which  the  vessel  will  carry. 

TuADE  Sale.  A  special  auction  or  sale  of  articles  suited  to  particular  classes 
of  dealers. 

Truss.  A  small  hand-packed  bundle  of  dry  goods,  the  outer  covering  being 
frequently  of  canvas.  Packages  of  hay  and  straw  compressed  and  roped,  or 
hooped,  are  called  trusses. 

Trustee.  One  appointed  to  act  for  another,  as  in  the  case  of  an  agent  for 
infants'  property;  or  one  deputed  to  act  for  the  general  benefit  of  cred- 
itors, &c. 

Ullage.    What  remains  in  a  cask  after  a  portion  is  gone  ;  a  cask  only 

part  full. 
Underwriter.    One  who  takes  a  risk  or  share  in  marine  insurance,  writing 

his  name  on  the  policy  of  insurance  as  answerable  for  a  certain  amount  in 

case  of  loss,  upon  receipt  of  an  agreed  rate  of  premium. 

Voucher.  An  acquittance  or  receipt,  discharging  a  person,  or  being  evi- 
dence of  payment. 

Wharfage.  The  charge  paid  on  goods  to  the  owner  or  occupier  of  a 
wharf. 


14* 


(161) 


BOOK-KEEPING. 


CASH 

There  are  several  different  styles  of  Cash  Books.  The  following  example  is 
a  lar^e  business,  the  dates  bcin-  placed  in  tlie  centre  of  the  pa<je.  In  the  pre 
the  form  shown  here  would  have  been  incouvcnient,  owing  to  the  small  num 

In  this  example  is  also  shown  a  convenient  method  of  balancmg  the  Cash 


Cash  Received. 


■ 

I 


i! 


I 


Ut  January,  18— 


On  hand 

Samuel  Jones 

James  Ure 

Sales  of  Merchandise 


Edward  Edwards 

Richard  Reid 

Sales  of  Merchandise 

31st. . 


DiBCOUDt 


William  Bruce 


Merchandise 

Miscellaneous 

Total 


25 


00 


14  00 


Ud3e. 


575 


620 


00 


00 


UiBcel's. 


1195 


00 


475 
C31 


Balance. 


546 
323 


OOi 


2725 


The  Itemi  of  IHtoount  «r«  posted  to  the  credit  of  the  partiet 
M  the  time,  and  to  the  debit  of  DiMount  in  one  amount  at 
the  end  of  the  month. 


39,00 


750 


00 
00 


00 


00 


550  00 


3920  00 


4470 


00 


The  cash  on  hand  is  noted  every  day  as  above ;  but  the  sum  is  not  extended 
balanced  for  the  month. 

(162) 


APPENDIX. 


BOOK. 

given  to  show  the  form  (or  some  modification  of  it)  recommended  to  be  used  in 
ceding  Cash  Book,  pages  28  and  33,  the  dates  are  placed  on  the  margin,  as 
ber  of  entries  on  each  day. 
Book  daily. 

Cash  Paid. 


Ledger 
Page. 

1st  January,  18— 
David  Green,  rent 

DiscouDt 

Mdse. 

t 
Expense 

Misccl's. 

500 

00 

N.  Allen 

36  00 

564  00 

Thomas  Hall 

300 

00 

Mdse,  bought 

416 

00 

Received  2231.00 

Paid           1780.00 

On  hand      451,00 

9^ 

1500 

Merchants  Bank,  deposited 

00 

Received  1940.00 

Paid           1500.00 

On  hand      440.00 

.^iKt. 

500 

00 

Merchandise  bought 

Miscellaneous 

23G4 

00 

Expense 

500 

00 

500 

00 

Merchandise 

916 

00 

916 

00 

Total 

3780  00 

- 

On  hand 

690 

00 

The  item*  of  Diieount  are  posted  to  the  debit  of  the  parties 
at  tbe  time,  and  to  the  credit  of  Discount  in  one  amount  at 
the  end  of  the  month. 

36 

00 

44W) 

00 

to  the  money  columns  till  the  end  of  the  month,  when  the  Cash  Book  is  finally 

(163) 


BOOK-KEEPING. 


J 


I 


ON  MAKING  AND  RECEIVING  BANK  DEPOSITS. 


COPY    OF    A    CIRCULAR 

ADDRESSED  TO  THE  MERCHANTS  AND  BANKING  CORPORATIONS 
OF  BOSTON,  BY  MR.  COMER,  IN  1853. 

No.  139  Washington  Street,  Boston, 
1st  Jantuxry,  1853. 
To  the  Merchavts  of  Boston.  Gentlemen :  T  have  long-  witnessed,  with  sur- 
prise and  rc'jret,  tlie  extremely  loose,  unsafe,  and  unsatisfactory  mode  of  making 
and  receivinj,'  deposits  of  money  by  the  merchants  and  banking  corporations 
of  this  city.  For  several  years  past  I  have  devoted  myself  to  the  business 
of  an  accountant,  nnd  have  endeavored,  in  its  practice,  to  improve  the  condition 
and  remove  tempt.itiou  from  all  classes  of  clerks.  I  now  respectfully  beg  leave 
to  point  out  to  you  some  of  the  evils  of  the  present  system,  in  the  hopes  of 
inducing  a  bettor. 

For  examph- :  The  Book-keeper,  or  some  other  clerk,  the  porter  or  boy,  in 
a  mercantile  estaMisIiment,  delivers  the  deposit  at  the  Bank,  — the  Receiving 
Teller  merely  putting  down  the  date  and  amount  on  the  small  pass-book.  Here 
are  avenues  oi)on  to  fraud. 

The  Clerk,  timptation  being  put  in  hia  way,  might  easily  imitate  the  figures 
Of  the  Receiving  Teller,  and,  putting  tlie  money  in  his  own  pocket,  await  the 
tUnotcement,  wliich  might  not  occur  for  several  days,  — and  tlien,  boldly 
asserting  that  lie  had  made  the  deposit,  miglit  even  produce  an  innocent  wit- 
ness, who  saw  him  in  the  Bank  at  that  time.  His  word  would  be  as  good  as 
the  Teller's.     It  is  more  difficult  to  prove  a  negative  than  an  affirmative. 

On  the  other  hand,  a  needy  Teller  might  receive  the  deposit,  make  a  slight 
variation  in  his  figures  upon  the  pass  book,  put  the  money  in  his  own  pocket, 
and  eventually  deny  the  receipt.  In  either  case,  two  parties  would  be  open  to 
suspicion,  and,  if  it  were  adroitly  managed,  the  rogue  would  be  as  likely  to 
escape  as  the  victim. 

Very  frequently,  foreign  money,  in  a  separate  package,  is  part  of  the  deposit, 
which  is  often  thrown  into  the  drawer  by  the  Receiving  Teller  without  count- 
ing, thus  opening  temptation  to  the  merchant's  and  the  bank  clerk  either  to 
abstract  or  exchange  bills.  Where  the  responsibility  would  rest  in  such  an 
event,  the  amount  deposited  having  been  entered  on  the  pass  book,  is  a  subject 
for  reflection. 

(164) 


APPENDIX. 

At  the  end  of  each  month,  the  merchant's  pass  book,  containing  the  only 
evidence  of  his  having  made  any  depoisit  whatever,  is  left  at  the  Bank  "  to  be 
made  up  ;  "  and  when  so  made  up,  the  checks  drawn  by  the  merchant  during 
the  month,  many  of  which  have  been  made  payable  to  order,  are  placed  in  the 
pass  book,  which  is  then  ready  for  the  first  person  who  represents  that  the 
merchant  sent  him  for  it.    A  boy  out  of  the  street  has  been  known,  at  request, 

to  go  into  a  bank  for  Mr.  's  book,  and  receive  it,  unquestioned,  with 

all  the  checks  for  the  month,  — the  indorsement  of  those  to  order,  perhaps, 
being  the  only  evidence  the  merchant  has  of  having  made  any  such  payment. 

What  I  propose  as  a  remedy  for  a  part  of  this  evil  is,  that  a  blank  form  of 
receipt  should  be  prepared  ;  a  certain  number  of  these  receipts  should  be  signed 
by  the  Cashier  and  handed  to  the  Receiving  Teller  each  morning,  when,  upon 
receipt  of  the  deposit,  all  the  Teller  would  have  to  do  would  be  to  write  on  the 
prepared  blank  the  name  of  the  depositor,  date,  and  amount ;  this  would  then 
be  handed  to  the  deliverer  of  the  deposit,  as  his  evidence  of  the  transaction. 
At  the  end  of  the  month,  the  merchant  would  send  all  these  receipts  to  the 
Bank,  receiving  in  exchange  his  checks  and  a  new  receipt  for  the  balance 
remaining  on  hand.  Or,  if  preferable,  the  merchant's  book-keeper,  or  the 
person  making  up  the  deposit,  might  fill  out  a  corresponding  receipt  for  the 
Receiving  Teller  to  sign.  These  receipts  might  be  bound  in  a  book,  if  desirable. 
I  do  not  pretend  to  offer  the  precise  mode  or  form  of  doing  this,  but  merely 
throw  out  the  suggestion  for  your  consideration,  believing  the  subject  to  be 
one  of  such  importance  to  the  mercantile  community  as  to  excuse  the  liberty 
I  have  taken  in  thus  addressing  you. 

I  am,  Gentlemen,  very  respectfully, 

Your  obedient  servant, 

GEORGE  N.  COMKK. 
(165^ 


m 


TABLE  OF  FOREIGN  MONEYS. 


DENOMIXATIOX. 


PARTS. 


VALUE. 


« 


Dollar  of  Chili, 100  truts, i.oo 

Central  Aniorioa, 8  reals,  10  cuarto:-, 1.00 

Denmark, 4c<  styver,  4  ^killing, 1.05 

Mexico, S  realh,  10  fuartOK, 1.00 

"  Norway, 5  ort,  21  Bkilliiiir, 1.06 

'*Peru, 8  reals,  10  ciuirtos, 1.00 

'  Porto  llico, 100  cents, 92 

'  Kome, lOpaoli, 1.05 

'  Sicily, 12  tari, 96 

'  Spain, 8  reals,  10  cuartos, 1.00 

'  Sweden, 48  skilling,  12  runstycka,  .   .   .  1.06 

'  Venezuela, loO  cents, 75 

Ducat  of  Naples, 100  graui, 80 

Florin,  silver,  of  Austria, 00  kreutzcrs,  4  pfennin<fs, .  .  .    .48^ 

"  Gennany,  So.  States,  00        "  4         "  ...    .40 

"   Netherlands,  ....  100  centimes, 40 

"  "        "    Prussia, 30  groschen,  18  pfennings, .  .  .    .23 

Franc  of  France  and  Belgium, 100  centimes, 18  6-10 

Francescoue  of  Tuscany, lo  paoli, 1.06 

Guilder  of  Curacoa,  Demerara, 
Essequibo,  and  Surinam, 

Lira  of  Sardinia, 100  contesimi, i«  o-lO 

"     "  Tuscany, 20  soldi,  12  denari, 10 

Livre  of  Genoa, 20     "      12     "       18  6-10 

"       "    Leghorn, 20     "      12     "       IS 

Marc  Banco  of  Himxburg, 10  skillings,  12  pfenning,   ...    .35 


>  ...  10)  centimes, 37 


.28 

.mi 

.52 
1.00 
1.12 


"      Current  of       "         10        "  12        " 

Mill  Kea  of  Azores, 1000  reis, 

"       "    "   Brazil, 1000    " 

"       "    "   Madeira, 1000    "       

«       it    «i   Portugal 1000    "       

Ounce  of  Sicily, 30  tari, 20  grani, 2.40 

Pagoda  of  India, 1.94 

"        star,  of  Madras, 42  fanams,  80  cash, \.M 

Pound  of  Great  Britain, 20  shillings,  12  pence, 4.84 

20        «'  12     "       ...  .4.00 


„  (  Nova  Scotia.  N.Brunswick. 


:l 


ewfoimdland  &  Canadas, 

Real,  plate,  of  Spiiin, 34  maravedis, i0 

Rix  Dollar  of  Batavia, 48  stivers, 75 

"        "        "  Berlin, 30  groschen,  12  pfennings, .  .  .    .69 

"       "        "  Bremen, 72  grotes,  5  swares, 783 

'*        "      Banco  of  Sweden, 48  skillings,  12  runstycks, .  .  .    .39J 

"        "  "      "    Norway, 6  marks,  10  skilling, 39J 

"    Thaler  of  Bremen, 72  grotes,  5  swares, 78J 

Rouble,  silver,  of  Russia, 100  kopecks, 75 

"        paper,  "        "      100       "  3^  to  1  silver. 

Rupee  of  British  India, 10  annas,  12  pice, 44J 

Scudi  of  Sicily, 12  tari, 1.00 

Tael  of  China, 10  mace,  100  candareens 1.48 

(166) 


■-f 


QUESTIONS  FOR  PRACTICE. 


A,  in  Boston,  sent  to  B,  in  Chicago,  merchandise  to  the  amount  of  ten  thou- 
sand dollars,  to  be  sold  on  joint  account.  B  advises  that  he  has  sold  to  a  prolit 
of  two  thousand  dollars,  and  that  he  has  forwarded  to  A  merchandise  to  the 
amount  of  fifteen  thousand  dollars,  to  be  sold  on  joiut  account.  A  pays  cash 
for  Ireight,  and  other  expenses,  twenty-five  hundred  dollars,  but  finding  tliat 
he  cannot  sell  to  advantage  in  Boston,  with  B's  consent  ships  the  whole  to  C, 
in  Havana,  to  be  sold  on  joint  account  —  that  is,  C  is  to  have  one  third  interest 
in  the  adventure.  He  advises  A  that  he  has  sold  to  a  loss  of  tliree  thousand 
dollars.    What  are  all  the  entries  ? 


SMALL  PROFITS  AND  LARGE  SALES. 
THE  NIMBLE  SIXPENCE. 

A  man  borrowed  $6000  to  commence  business  with,  agreeing  to  pay  interest 
at  the  rate  of  0  per  cent,  per  annum,  payable  monthly,  that  is,  $30  per  month. 
His  store  rent  and  other  expenses  amounted  to  $270  per  month  additional. 
He  purchased  his  goods  on  six  months'  credit,  but  invariably  paid  cash,  re- 
ceiving 5  per  cent,  discount.  He  sold  his  goods  at  5  per  cent,  advance  of  the 
invoice  price,  and  cleared  out  his  entire  stock  and  re-invested  the  proceeds 
every  month.  At  the  end  of  the  year  he  ^aid  back  the  principal,  $0000. 
What  profit  did  he  make  ?  Ans.    $7318.80. 


LIQUOR  AGENCY  ACCOUNT. 

The  selectmen  of  a  certain  town  appointed  a  liquor  agent,  and  furnished  him 
with  liquor  to  the  amount  of  $8'->5.00,  and  cash  $215.  The  agent  received  cash 
for  liquor  sold  $1323.40.  He  paid  for  liquor  bought  $937  ;  to  the  town  treas- 
urer $300 ;  sundry  expenses,  $29 }  his  own  salary,  $205 ;  he  delivered  to  in- 
digent persons,  by  order  of  the  town,  liquor  to  the  amount  of  $13.50.  Upon 
taking  stock  at  the  end  of  the  year,  the  liquor  on  hand  amounted  to  $010.50. 
Did  the  town  gain  or  lose  by  the  agency .''  and  how  much.' 
Has  the  agent  any  money  in  his  hands  belonging  to  the  town,  or  does  the 
town  owe  the  agent  ?  and  how  much  in  cither  case .' 

Ans.    The  town  lost  $103.20. 

The  agent  owes  the  town       7.40. 


Agreeably  to  your  request,  Messrs.  S.  &  Co.,  of  Canton,  collect  and  ship  to 
you,  by  the  Guiding  Star,  copper  cash  to  the  value  of  $118.33,  for  which  they 
draw  on  Messrs.  Baring  Bros.  &  Co.,  London,  a  draft  on  your  account  for 
£2904,  — a  draft  on  London  of  that  amount  being  equal  to  $118.33  at  Canton. 
Messrs.  Baring  Bros.  &  Co,  charge  you  commissions,  &c.,  amounting  to  £56, 
making  their  claim  against  you  £2960,  to  meet  which  you  purchase  of  Messrs. 
J.  E.  Thayer  &  Brother  a  draft  on  London  for  £29no,  giving  them  in  payment 
T.  &  Co.'s  acceptance  of  your  draft  at  six  mouths,  for  $15535,  which  they  dis- 
count at  1^  per  cent,  per  month.    What  are  all  the  entries  ? 

(167) 


lit 


I 


I 


CARD. 


COMER'S  COMMERCIAL  COLLEGE, 

Cranite  BuilJinj,  corner  of  Wasliin^ton  and  School  Streels,  Boston, 

(Founded  by  G.  N.  Comer,  a.  d.  1840,) 

Offers  peculiar  facilities  for  preparing  young  men  for  Mercantile, 
Engineering,  or  Seafaring  life,  —  not  the  mere  sclioolboy  theories  of 
the  academies,  but  such  practical  knowledge  as  will  enable  the  graduate 
to  put  his  acquirements  into  immediate  operation  with  confidence. 

There  being  no  class  si/stem,  students  may  enter  at  any  time ;  and 
those  who  desire  it  are  aided  in  obtaining  suitable  employment. 

A  separate  department  is  provided  for  Ladies,  who  receive  in- 
struction from  the  principals,  the  lady  superintendent,  and  the  other 
teachers. 

Xearlt/  all  the  lady  book-keepers  in  the  city  and  vicinity,  as  also 
hundreds  of  the  most  expert  pe?imen  and  accountants,  have  been  prepared 
for  and  placed  in  their  present  sitxiations  by  the  principals  of  this  insti- 
tution, which,  under  its  present  (1861)  management,  has  been  unin- 
terruptedly and  successfully 'conducted  for  twenty  years  past. 

A  thorough  knowledge  of  Book-Keepino  may  be  acquired  in 
from  one  to  three  months'  study,  dependent  upon  the  degree  of  pre- 
vious preparation,  application,  and  tact  brought  to  bear  upon  it. 

Practical  Navigation  may  be  acquired  in  from  two  to  ten  weeks. 

Officers,  and  others,  already  competent,  may  receive  certificates 
of  their  qualifications  as  Navigators,  upon  presenting  themselves  for 
examination  at  this  institution,  which  is  under  the  direct  patronage 
of  the  Marine  Insurance  Companies  and  the  Merchant  Ship-owners 
of  Boston. 

The  best  Instruments,  Charts,  &c.,  are  provided  free. 

For  the  convenience  of  those  occupied  during  the  day,  there  are 
Evening  Sessions  between  the  first  of  September  and  the  first  of  May. 
Full  particulars  are  given  in  the  Annual  Catalogue  and  Circular  of 
Terms,  which  may  be  had  at  the  College  Office,  No.  139  Washington 
St.,  Boston,  or,  upon  request,  will  be  sent  by  mail,  free. 

Mr.  Comer  may  be  consulted  in  relation  to  all  matters  of  account. 
Particular  attention  is  given  to  Office  Business, — the  Opening, 
Posting,  and  Closing  of  Books,  the  Examination  and  Adjustment 
of  Complicated  Accounts,  settling  Controversies  in  relation  to  De- 
ceased, Insolvent,  and  other  Estates. 

GEORGE   N.  COMER,  ) 
OLIVER  E.  LINTON,  ^  PaiNciPALS. 
(108) 


I 


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COLUMBIA  UNIVERSITY  LIBRARIES 


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JUL  4  1945 


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